FHFA's Watt battles House over "race to the bottom"

mel watt
By Ryan Bolger
27 Jan 2015

Federal Housing Finance Agency director Melvin Watt fought off criticism of the agency’s move to loosen underwriting standards at Fannie Mae and Freddie Mac during a hearing in front of the House Financial Services Committee on Tuesday.

The FHFA announced last October that Fannie Mae and Freddie Mac would begin purchasing mortgages with LTVs as high as 97% for their respective securitization platforms. Shortly after, at the start of this year, the Federal Housing Administration (FHA) announced lower mortgage insurance premiums, which have ...

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