The Most Important Issue in Real Estate

Published: 2021-06-29 06:59:24
essay essay

Category: Business

Type of paper: Essay

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Hey! We can write a custom essay for you.

All possible types of assignments. Written by academics

The Most Important Issue in Real Estate
The proposal of new, stringent mortgage and financing requirements is potentially the most significant issue in real estate today. The new measures would further convolute the quagmire that is the United States real estate market.
The Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have already voiced their support of a proposal that would require homebuyers to put down at least 20 percent of the sales price in order to obtain a "qualified residential mortgage." Currently, the Dodd-Frank financial overhaul law of 2010 requires regulators lenders who approve any unqualified residential mortgages to retain 5% ownership if the loan is packaged and sold to investors. The new proposal would remove the 5% liability placed on lenders, deeming a 20 percent down payment as automatically "qualified." Many believe that this could be on the low-end of required down payments as well, with 25 and 30 percent requirements being more likely, particularly if it involves non-owner-occupied or refinanced properties. One proposal would also require borrowers to maintain a 75% loan-to-value ratio for refinances and a 70% loan-to-value for cash-out refinances. With the backing of the three aforementioned federal agencies, the proposal would only need the approval of the Department of Housing and Urban Development, the Federal Housing Finance Agency and the Securities and Exchange Commission.

Warning! This essay is not original. Get 100% unique essay within 45 seconds!


We can write your paper just for 11.99$

i want to copy...

This essay has been submitted by a student and contain not unique content

People also read