“Here’s my 2 cents on raising LTVs. I can’t stand the fact that we are even debating this idea. My issue is that if you lower the required down payment, you will have more potential homeowners, thus spurring on economic growth, yadda, yadda, yadda. These buyers couldn’t even save 5% for a down payment. What are they going to do about the increased costs of home ownership versus renting? Home maintenance, yard, increased energy bills, etc…

…What will happen when the heater completely dies? Will they have money in savings to fix the problem? No, they won’t. They will go into debt thus the downward spiral continues. Maybe we should start at the grade school level and teach kids about money. How to make a budget, manage debt, save for retirement. Most kids only know how to use their ATM card and check their balance online. I challenge you to ask a millennial if they balance their checkbook (or know how).”, Compliance Officer at a Bank, Mortgage Industry Newsletter, November 2014

Posted on November 20, 2014, in Postings. Bookmark the permalink. Leave a comment.

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