Banks should require higher down payments. Part of the problem with the bubble, is that buyers could walk in with little or nothing down.
Wells Fargo & Co., the nation's largest mortgage lender, has asked U.S. regulators to set a down-payment standard of 30% on mortgages that wouldn't have to meet a new requirement that banks retain 5% of a loan if it is securitized. The so-called risk-retention requirement is aimed at preventing future housing meltdowns because lenders could face steeper losses if their loans go bad.
During the real-estate boom, it was common for home buyers to put down little or nothing. Many lenders now require buyers to put down about 20% for home loans that don't require mortgage insurance.
If you have 30% down payments, then you'll see a lot of pressure on home prices.
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