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Tuesday, May 17, 2011

39% of Homebuyers in 2010 put a downpayment that was less than 20%

That is significant because new mortgage risk retention rules and mortgage underwriting rules are being suggested.
Regulators proposed a rule in March requiring lenders to maintain 5% of the credit risk on loans, including mortgages, that are packaged into securities. The exception is the qualified residential mortgage, which among other standards, must include a 20% downpayment from the borrower.
While rule makers intended the QRM to maintain a narrow slice of the market, a variety of trade groups and lawmakers began an effort to lower that downpayment figure. But even if it was lowered to 10%, as Federal Housing Administration Acting Director Bob Ryan suggested to Congress, the impact would still be widespread. Nearly 25% of homebuyers in 2010 paid less than 10% down, CoreLogic said.
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