The 20 percent proposal is alive but groups are still trying to bury it.
The higher initial equity the lower the probability of foreclosure is the belief. The proposal to require 20% down payment on all mortgages is most likely be pushed back until after the next election. Analysts estimate this could prevent up to 40 percent of buyers from qualifying for a low-interest-rate mortgage and cripple the still-struggling housing market. For more details see this article by Kenneth Harney.
Personally, I hope that we are able to continue with the various governmental programs and agencies that do allow responsible home ownership to flourish. Yet, not in the manner it has in the past where the push for home ownership overrides common sense on the types of loans and borrowers that are approved.
