Re:Maybe Treating Housing as an Investment Was a Colossal Mi...
by Retric on Wednesday March 08, 2023 @01:22PM
(#35072719)
> The down payment required by banks before regulation was often 30% or more.
I am talking about lending before regulation. High down payments were not universally applied, so yes sometimes a loan might require 40% but other borrowers might offer nothing. My point is you can’t simply say the required amounts were excessively high some of the time because they weren’t universal and selected based on a perception of risk.
I am talking about lending before regulation. High down payments were not universally applied, so yes sometimes a loan might require 40% but other borrowers might offer nothing. My point is you can’t simply say the required amounts were excessively high some of the time because they weren’t universal and selected based on a perception of risk.
It’s not just regulation at play here, the government has decided to reduce bank’s risks while also subsidizing home loans. Net result is more home owners but also much longer mortgages. https://www.thetruthaboutmortgage.com/wp-content/uploads/201...