Fannie Mae Drops Policy Over Down Payments

Fannie Mae confirmed it is scrapping a policy that required higher down payments on home mortgages in areas where house prices are falling.

The change comes in response to protests from vital political allies of the government-sponsored provider of funding for mortgages, including the National Association of Realtors, the National Association of Home Builders and organizations that promote affordable housing for low-income people.

Those various groups have said the ...