In the six months since Federal Housing Finance Agency and the GSEs announced the return to low down payment mortgages, with Fannie Mae CEO Tim Mayopoulos noting, "Now we can safely and responsibly do these loans," the industry and its followers have been in debate on the prudence of GSE re-entry into high loan-to-value lending.

Given recent history, that's an understandable response from the general public and some mortgage lending stakeholders. However, the practically Pavlovian fear and loathing triggered by the phrase "97% LTV" is overblown.

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