The relationship between home buyers and mortgage banks if fundamental to real estate. Nothing can be more of a barrier to home ownership then a big down payment requirement. The National Association of REALTORS® indicates that the average American family would need to save for 25 years to afford a 30% down payment on a home loan. Without a change in this requirement, the rule would have taken effect on January 1st, removing access to loans for half of America.
The National Association of REALTORS® has been in congress fighting hard to strike the minimum downpayment requirement of 20% on Qualified Residential Loans. They were battling against the Consumer Protection Bureau. Today, it was announced that the minimum downpayment requirement was stricken from the QRM rules. The rules are still tough on lenders, but this effectively avoids a January shut down in real estate sales that was predicted if the QRM rule went into effect with the downpayment rule in effect on January 1st.
NAR President Gary Thomas has made this a significant component of his term in office. Great Job! Here is the NAR announcement http://www.realtor.org/news-releases/2013/08/statement-from-nar-president-gary-thomas-on-qualified-residential-mortgage-rule Next time you wonder what NAR does for real estate, point to this. Its is a huge win.