In March, Federal bank regulators proposed that mortgage lenders require a minimum 20% down payment on many home loans. The “law of unintended consequences” is being bandied about. After years of too lax lending regulations, some say that this is a gross overreaction and will result in a death blow to the housing market for years.
Opposition to the 20% down payment rule includes:
• National Association of Realtors®
• Mortgage Bankers Association
• consumer lobbying groups
• Center for Responsible Lending
• 40 members of the U.S. Senate