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Fannie Mae's decision to allow 5 percent down payments

Fannie Mae's decision to allow 5 percent down payments in declining markets, such as many areas in Florida, will "help encourage buyers to come back into the housing market," according to NAR President Dick Gaylord. NAR Chief Economist Lawrence Yun went even further: "The Fannie Mae decision is huge and will have a positive impact, perhaps significantly, on the housing market," he says. "We are very appreciative to Fannie Mae for listening to us and agreeing." NAR and other organizations have been calling on both Fannie Mae and Freddie Mac to change the declining market downpayment policy, which disproportionately affects minorities and lower income families, as well as first-time homebuyers. "We heard the concerns of NAR and we reviewed and determined that changes in our policy were needed," Gwen MuseEvans, Fannie Mae vice president for credit policy and controls, told Realtors in Washington, D.C., last week.