WASHINGTON - Low down payment mortgages financed by Fannie Mae and Freddie Mac in lower-income urban areas are likely to default more frequently than similar loans made in other areas, according to a preliminary study by government regulators.

The Office of Federal Housing Enterprise Oversight has found that loans with a 95% loan-to-value ratio in "underserved" areas have higher rates of default than loans of the same ratio in other areas.

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