Recent escalation in the rate of delinquency on loans insured by the Federal Housing Administration has credit standards for government and conventional mortgages being debated.

In her written testimony last month, Acting Federal Housing Commissioner Dana Wade told the House subcommittee on Housing and Insurance that the number of delinquent FHA loans has jumped.

While FHA requires just a 3.5 percent down payment, secondary mortgage giants Fannie Mae and Freddie Mac have begun offering lower down payments and higher debt ratios.

Source: Mortgage Daily