Bill Gross, co-CEO of Pacific Investment Management, said that Fannie Mae and Freddie Mac should lower their down-payment requirements to help the housing market and the broader economy. "To the extent that you can finance a 3.5% to 4% [mortgage] with a 20% or 25% down payment, most ... households can't come up with the money," Mr. Gross said. "So there needs to be some type of cautionary reduction in terms of down payments."

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