Fannie Mae's announcement of a new program designed to allow homeowners with less-than-perfect credit histories to be approved for mortgages rankled many mortgage players recently, reflecting a growing opposition to the agencies' long-standing plans to enter the subprime arena.

Fannie Mae's Timely Payment Rewards program, designed to expand the size of the underwriting box it uses to qualify buyers, will give homebuyers in subprime mortgage markets the ability to borrow at a rate as much as two percent lower than the traditional rate for high-risk borrowers.

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