Fannie is finally reacting to the market. They have been pulling back from doing loans in markets that they determine are "declining in value" Making it very hard for particularly new homeowners to enter the market.
This succeeded in putting many new buyers into and FHA mortgage. This is not necessarily a bad thing. FHA only requires 3% down and allows the seller to pay ALL the closing costs vs 3% for Fannie/Freddie. Theri rates have been better lately that the conforming and PMI is lower due in part to the upfront MI that FHA charges and finances in the mortgage.
They are finally turning around and saying that even if the market is "declining" they will still do 5% down if this is your primary residence.
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