{"id":46438,"date":"2011-03-02T07:45:09","date_gmt":"2011-03-02T07:45:09","guid":{"rendered":"http:\/\/therealestatemango.com\/2011\/03\/02\/the-20-rule-in-mortgage-lending-and-what-it-means-to-the-buyer\/"},"modified":"2019-04-23T20:52:24","modified_gmt":"2019-04-23T20:52:24","slug":"the-20-rule-in-mortgage-lending-and-what-it-means-to-the-buyer","status":"publish","type":"post","link":"https:\/\/ewmrealestate.com\/blog\/the-20-rule-in-mortgage-lending-and-what-it-means-to-the-buyer\/","title":{"rendered":"The 20% Rule in Mortgage Lending And What It Means To The Buyer"},"content":{"rendered":"<p><a href=\"http:\/\/therealestatemango.com\/files\/2011\/03\/homebuyers-at-a-bank.jpg\"><img loading=\"lazy\" class=\"alignleft size-medium wp-image-1396\" src=\"http:\/\/therealestatemango.com\/files\/2011\/03\/homebuyers-at-a-bank-300x200.jpg\" alt=\"Real-estate agent showing interior of house to senior couple\" width=\"300\" height=\"200\" \/><\/a>On March 1, the<a title=\"20% Rule in Financing\" href=\"http:\/\/latimesblogs.latimes.com\/money_co\/2011\/03\/mortgages-20-down-payment-dodd-frank-qualified-residential-risk-retention.html\" target=\"_blank\" rel=\"noopener noreferrer\"> Los Angeles Times<\/a> reported that key U.S. financial regulators have agreed to a miniumum 20% down payment when financing a home.\u00a0 These mortgages would be exempt from the so-called risk retention standards for banks.<\/p>\n<p>Buyers with less than 20% could face higher borrowing costs, or could be priced out of the market, altogether.<\/p>\n<p>The Office of the Comptroller in the Federal Deposit Insurance Corporation have agreed on this rule.\u00a0 The Federal Reserve is in\u00a0 favor, also.\u00a0 <strong>All regulators are supposed to come to<\/strong> <strong>an agreement by late April.<\/strong><\/p>\n<p>There will still be some 5% down mortgages that could be waived for qualified mortgages with more responsibility for the banks holding these mortgages.<\/p>\n<p><span style=\"color: #993300\"><strong>If this rule becomes standard,\u00a0 it may result in less homes being sold, but on the other hand, banks will experience less defaults and it will strengthen the housing market in the long run. It doesn&#8217;t help the real estate market when many people buy homes with very little money and only hope they can meet the payments.<\/strong><\/span><\/p>\n<p><span style=\"color: #993300\"><strong>We have seen, in the past few years, the\u00a0\u00a0thousands of homes that are in default and facing a foreclosure as well as those already foreclosed.\u00a0 When it is too easy to take on a debt like owning\u00a0 a mortgage, it becomes, in many cases, too difficult to hold on. <\/strong><\/span><\/p>\n<p><span style=\"color: #993300\"><strong>Making sure that buyers can truly live up to their obligations will help stabilize\u00a0the real estate market.<\/strong><\/span><\/p>\n<p><span style=\"color: #993300\"><strong>If you have opinions on this pending regulation, please comment on this site.<\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On March 1, the Los Angeles Times reported that key U.S. financial regulators have agreed to a miniumum 20% down payment when financing a home.\u00a0 These mortgages would be exempt from the so-called risk retention standards for banks. Buyers with less than 20% could face higher borrowing costs, or could be priced out of the<\/p>\n<p class=\"more-link\"><a href=\"https:\/\/ewmrealestate.com\/blog\/the-20-rule-in-mortgage-lending-and-what-it-means-to-the-buyer\/\" class=\"themebutton2\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":130092,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_expiration-date-status":"","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[]},"categories":[11767],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The 20% Rule in Mortgage Lending And What It Means To The Buyer - BHHS EWM Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ewmrealestate.com\/blog\/the-20-rule-in-mortgage-lending-and-what-it-means-to-the-buyer\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The 20% Rule in Mortgage Lending And What It Means To The Buyer - BHHS EWM Realty\" \/>\n<meta property=\"og:description\" content=\"On March 1, the Los Angeles Times reported that key U.S. financial regulators have agreed to a miniumum 20% down payment when financing a home.\u00a0 These mortgages would be exempt from the so-called risk retention standards for banks. Buyers with less than 20% could face higher borrowing costs, or could be priced out of theRead More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ewmrealestate.com\/blog\/the-20-rule-in-mortgage-lending-and-what-it-means-to-the-buyer\/\" \/>\n<meta property=\"og:site_name\" content=\"BHHS EWM Realty\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/EWMRealtyInternational\" \/>\n<meta property=\"article:published_time\" content=\"2011-03-02T07:45:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-04-23T20:52:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ewmrealestate.com\/blog\/wp-content\/uploads\/2019\/06\/BHHS-On-Solid-Background.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"376\" \/>\n\t<meta property=\"og:image:height\" content=\"376\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Admin\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/the-20-rule-in-mortgage-lending-and-what-it-means-to-the-buyer\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/the-20-rule-in-mortgage-lending-and-what-it-means-to-the-buyer\/\"},\"author\":{\"name\":\"Admin\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/#\/schema\/person\/c02e56ee015dc7d104143c38d8028970\"},\"headline\":\"The 20% Rule in Mortgage Lending And What It Means To The Buyer\",\"datePublished\":\"2011-03-02T07:45:09+00:00\",\"dateModified\":\"2019-04-23T20:52:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/the-20-rule-in-mortgage-lending-and-what-it-means-to-the-buyer\/\"},\"wordCount\":264,\"publisher\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/#organization\"},\"articleSection\":[\"EWM News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/the-20-rule-in-mortgage-lending-and-what-it-means-to-the-buyer\/\",\"url\":\"https:\/\/ewmrealestate.com\/blog\/the-20-rule-in-mortgage-lending-and-what-it-means-to-the-buyer\/\",\"name\":\"The 20% Rule in Mortgage Lending And What It Means To The Buyer - 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