LA Real Estate Advice: Rulemaking Could Crimp the American Dream: Broad Homeownership on the Line in Washington This Week
Posted by admin on Apr 05, 2011Westside LA Real Estate Advice: Recently, the Federal Deposit Insurance Corporation became the first of six government agencies to adopt for public comment a proposed rule concerning risk retention on mortgage-backed securities, as required by section 941 of the Dodd Frank Act. As several of the FDIC directors noted, the rule could have profound consequences for this country’s financial system, and in particular for its housing finance system. Most at risk, perhaps, is the ability of that system to effectively serve the vast majority of Americans looking to buy their first homes who have no hope of saving a 20% down payment plus closing costs, and no access to relatives or a charitable organization or governmental entity that might provide the funds (with no expectation of repayment).
