NAHB: proposed 20 percent down rule eliminated

NAHB and home buyers across the land, six federal regulatory agencies on Aug. 28 released a revised proposed rule to implement the credit risk retention provisions of the Dodd-Frank Act. The proposed rule would eliminate a 20 percent downpayment requirement and other onerous underwriting criteria that NAHB opposed. In an official statement, NAHB Chairman Rick Judson said that “this proposed, updated rule is a positive step toward ensuring that creditworthy home buyers have a better chance at securing affordable mortgage loans.” The agencies will seek public comment for 60 days (NAHB will weigh in) before holding a final vote on the new rule