Fannie Mae, Freddie Mac and private mortgage lenders are nearing an agreement that may lower restrictions on borrowers with poor credit, in an effort to boost lending amid a tepid housing recovery, according to published reports.

The two mortgage giants are considering programs that would make it easier for lenders to offer mortgages with down payments of as little as 3% for some borrowers, according to reports by Bloomberg and The Wall Street Journal over the weekend, citing unnamed people familiar with the matter.

It would mark a key loosening of lending standards for the mortgage giants and banks in the aftermath of the financial crisis of 2008, when credit requirements were made far more restrictive.

The changes, which could be announced this week, would help banks protect themselves from future claims of making bad loans, the published reports said.

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http://www.usatoday.com/story/money/business/2014/10/19/frannie-mae-and-freddie-mac-plan-to-ease-lending/17551043/