Government-sponsored mortgage lender Fannie Mae (FNM: sentiment, chart, options) this morning announced that it's doing away with higher minimum down-payment requirements for borrowers in distressed real estate markets, The Associated Press reported. FNM will now require minimum down payments of 3% to 5% for all guaranteed loans for the purchase of single-family, primary residences nationally, with the new policy set to take affect June 1. Previously, the mortgage firm required a higher minimum if the loan was for a property within a market consumed by declining real estate prices.

Right out of the gate this morning, the shares of FNM fell more than 4%, or roughly $1.21, to hover near the 29 level. The stock has lost around 55% since trading near the 68.50 marker in early October, and has been trading within the confines of its 10-week and 20-week moving averages for 6 of the last 7 weeks.