The industry should regulate itself and 20% down should be about the minimum. Otherwise History is Doomed to Repeat Itself!
Oh, I’m not disputing that 20% down is prudent nowadays (and I’m saying this as a lifelong renter with bad credit that, given current tight credit, will probably never own a home). I’m just saying that it’s not Washington’s place to force banks to require it. If a bank wants to step out on the ledge and get back into the “subprime” loan business or loosen down payment requirements, that’s their business as long as the taxpayer isn’t on the hook if they screw it up.
}:-)4
They used to.
Then young lawyers, fresh out of college, like Barry Obama, took the banks to court on the basis that 20% down was racist.