Friday, 7 June 2013

The hold-up centers on loan down payments

A recent Beverly Hills Times article points out that there have been few private mortgage-bond deals in recent years. The reason is the banks that sell mortgage-backed bonds are waiting for regulators to finish drawing up rules aimed at strengthening the market.





The hold-up centers on loan down payments. Private lenders want more leeway on down payments, so private bonds can be issued on mortgages with lower down payment requirements. Regulators have balked at the request in the past, but today it appears they are more willing to compromise.


You save taxes when you buy it. You save taxes while you own it. You save taxes when you sell it. "The mortgage interest deduction and the deduction for property taxes are, to most Americans, sacred. These deductions have been around since time immemorial and the purpose was to encourage home ownership," said Leonard W. Williams, a certified public accountant in Sunnyvale, CA.



Regulators are being pressured by lenders and consumer advocates. Both sides have cautioned against stringent down-payment requirements, arguing that restrictions would limit lending. The regulators are listening, and that’s good news, because if they listen and act on what they hear, we could see lending extended to potential borrowers who are champing at the bit to get in the market and buy a home.



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Brad Keyes Realty 9665 Wilshire Blvd Beverly Hills, CA 90212
Telephone: +1 310-367-3372

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