Fannie Mae is taking steps to try and boost the industry by eliminating previous requirements made in December for high amounts on minimum down payments for borrowers in areas where home prices are currently lowering. The company will now only require a minimum down payment of 3%-5%.

This move is likely a result of heavy pressure placed on Fannie Mae and the similar organization Freddie Mac, to be less strict in order to counteract high numbers of foreclosures and defaults. Senators have been considering withdrawing money from funds accumulated from Fannie and Freddie in order to support new programs that deal with foreclosure-prevention.

Fannie Mae and Freddie Mac were created by Congress to boost the marker, by purchasing home loans from banks/lenders and turning those loans into for sale securities on Wall Street. Together the companies have assets near to $5.1 trillion in home-mortgage debt.

A spokesman for Freddie Mac says that instead of determining down payment percentages according to zip code, appraisers will now make individual decision.