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Mortgage lending expert Erin Elmore on the need to require homebuyers to put a higher down payment on a new home.
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What do you think we'll learn our lesson from the less -- -- -- let's just say don't bet the house on a governor backed mortgages now are gonna require.
-- -- and updated at 3.5.
Percent here's the big Republican solutions of that hazard they're pushing now aren't what's up to 5%.
Mortgage expert Darren L Morris says it's not gonna happen all over again when he -- in this.
You know I think we -- more than 5% increase have.
One and a half percent isn't just gonna do the trick we need to increase that the least.
To 10% we -- conservative approach to lending.
Wake up everybody we have short term memory loss here we just went through a financial crisis in the mortgage sector we really need to -- and and and keep -- can service.
FINS.
And the logic for having folks put more money down they have more skin in the game that sort of thing.
But it does he did Ted present do it on to our market back to my parents time.
Even might have our government's response it was -- percent and then we we went from -- -- it's all these created flavor mortgages.
And on and on what to adequately.
Well we created a major recession actually created I didn't like to see my 401K tank I didn't like to see the economy and very bad shape but.
Basically I do believe that the 20% -- is still a good rule of thumb the more equity you have in your home.
The more were all protected from foreclosure but I'm saying that 5%.
Please that's peanuts that's nothing that's just the GOP looking like they've done something when really they've done nothing 10% to good start 20% even -- The argument against and I share your view by the way in which -- -- was -- you but eight.
The argument against doing in another words get your top clubs.
Is that that's gonna take that many more people out of the market and prolong this housing -- for a while.
I do understand that point of view as well but I do think you have to weigh all of the competing interests and I think it's.
More importantly protect our economy as a whole -- help those few homeowners that can afford to put down more money perhaps they.
Wait a little longer save a little more just we have to affect the economy first and foremost but you'll have fewer buyers and oh absolutely without a doubt I think that's definitely one of the drawbacks.
The situation but like I said it's just set cost benefit analysis.
I'd rather have a safe short at economy as opposed to.
People getting these hap hazard loose lending laws are that are just spinning out of control.
Welcome -- thank you very much.
