A plan unveiled by the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve on March 29 to require a minimum 20 percent down payment for “qualified residential mortgages” would disrupt the fragile housing market and jeopardize the struggling economic recovery, according to NAHB.
According to FDIC chairman Sheila Bair, the 20 percent down payment requirement applies only to “that segment that is exempt from risk retention.” In other words, mortgage loans for which lenders do not retain at least 5 percent of the loan will require a 20 percent down payment.
Click here to read the complete article in Nation’s Building News.
Click here to read the proposal by FDIC and the Federal Reserve.
That Washington Post wrote in support of the proposal on its Opinion Page on March 31.
Click here to read the Post’s editorial.
Let the eat cake: click here to read a rebuttal to the Post’s editorial.