NAR Call for Action: No 20% downpayment rule

Wednesday, 25 May 2011 04:59 Written by Shawn

WASHINGTON - May 19, 2011 - Could all buyers afford a 20 percent downpayment?

The National Association of Realtors® asks members to imagine what the real estate market would look like if every buyer needed a 20 percent downpayment to get a mortgage. How many potential buyers would miss out on the American Dream? And what would that do to a market already saturated with repossessed homes?

According to NAR, that 20 percent requirement is a very real possibility if the new regulations governing Qualified Residential Mortgages (QRM) take effect this year.

NAR says that Congress must understand the impact this rule will have on home sales, and it is asking all members to contact their personal senator and representative. The Call for Action email developed by NAR asks lawmakers to tell regulators that a 20 percent downpayment was not their legislative intent. Instead, regulators should implement a more reasonable Qualified Residential Mortgage (QRM) that will keep creditworthy buyers in the market and able to get a loan.

The process takes very little time through NAR's Realtor Action Center.  The email that has been created includes space for a personal message. Once Realtors fill out the required information, the system automatically sends a copy of the email to personal representatives.

© 2011 Florida Realtors®