Will Buyers Get Caught In A Squeeze Play?
Federal agencies haven’t been functioning much this month, but six of them are looking at a proposal that could squeeze huge numbers of buyers out of the mortgage market: a mandatory 30 percent down payment for borrowers who seek the best rates and terms.
The regulatory agencies have set an Oct. 30 deadline for public comments on a 505-page proposal that creates new rules for bond financing of loans for homes, autos and other assets.
Among the housing proposals is something known as “QRM-Plus.” It would require 30 percent down or more for purchasers, tough credit standards and a ban against second liens on properties at closing.
Though the proposal was floated as an alternative to a much less onerous standard preferred by a majority of the regulators, it is being taken seriously by housing, mortgage, civil rights and consumer groups — nearly 50 of whom are part of a coalition opposing its adoption.
The six agencies include the Federal Reserve, the Federal Deposit Insurance Corp., the Federal Housing Finance Agency, the Department of Housing and Urban Development, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission.
read more at: http://www.utsandiego.com/news/2013/oct/20/tp-will-buyers-get-caught-in-a-squeeze-play/
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