Tajuk : Bank of America’s CEO says a pre-crisis idea could make it easier for millennials to buy homes
link : Bank of America’s CEO says a pre-crisis idea could make it easier for millennials to buy homes
Bank of America’s CEO says a pre-crisis idea could make it easier for millennials to buy homes
Mortgage lending standards have tightened since the housing bubble brought down the financial system a decade ago.
While homeownership has fallen, home prices have jumped back to precrisis levels, suggesting that the cost and requirements for getting a mortgage are holding back many would-be buyers.
Brian Moynihan, Bank of America’s CEO, told CNBC that eased regulations including a lower down payment could make it easier for millennials, in their household formation years, to buy homes.
“Our goal, going back to regulatory reform, is should you move the down payment requirement from 20% to 10%? Wouldn’t introduce that much risk but would actually help a lot of mortgages get done,” Moynihan told CNBC’s Kelly Evans.
Evans had asked Moynihan about mortgages in the context of widely shared comments from Australian tycoon Tim Gurner last week, which suggested millennials should stop spending on avocado toast if they want to afford homes.
Moynihan said he shared the article with his son, and added:
“I think at the end of the day people forget that, at different points in your life and different points on what you’re doing in life requires you to think about housing differently as a place for you and your friends, as a place for you and maybe your significant other, and then ultimately, a place for family. That drives change. And so yes, it’s taken more time. And we talked a lot about this, you know, four or five years ago, that if you require a 20% down payment, it takes just a little more time to accumulate 20% than it would 3% or none, which is what the rules were for a short period of time.”
Leading up to the recession, some lenders lowered the 20% down payment standard or required no down payment at all.
The scars from the housing crisis now make lenders cautious of who they approve. In the first quarter, the median credit score of a new mortgage was 764, the highest in nearly two years and up from the prerecession average of 720, according to Gluskin Sheff.
According to Moynihan, there’s still wiggle room to ease regulations.
Read more stories on Business Insider, Malaysian edition of the world’s fastest-growing business and technology news website.
✍ Sumber Pautan : ☕ Business InsiderBusiness Insider
Kredit kepada pemilik laman asal dan sekira berminat untuk meneruskan bacaan sila klik link atau copy paste ke web server : http://ift.tt/2qEOm0z
(✿◠‿◠)✌ Mukah Pages : Pautan Viral Media Sensasi Tanpa Henti. Memuat-naik beraneka jenis artikel menarik setiap detik tanpa henti dari pelbagai sumber. Selamat membaca dan jangan lupa untuk 👍 Like & 💕 Share di media sosial anda!
Mortgage lending standards have tightened since the housing bubble brought down the financial system a decade ago.
While homeownership has fallen, home prices have jumped back to precrisis levels, suggesting that the cost and requirements for getting a mortgage are holding back many would-be buyers.
Brian Moynihan, Bank of America’s CEO, told CNBC that eased regulations including a lower down payment could make it easier for millennials, in their household formation years, to buy homes.
“Our goal, going back to regulatory reform, is should you move the down payment requirement from 20% to 10%? Wouldn’t introduce that much risk but would actually help a lot of mortgages get done,” Moynihan told CNBC’s Kelly Evans.
Evans had asked Moynihan about mortgages in the context of widely shared comments from Australian tycoon Tim Gurner last week, which suggested millennials should stop spending on avocado toast if they want to afford homes.
Moynihan said he shared the article with his son, and added:
“I think at the end of the day people forget that, at different points in your life and different points on what you’re doing in life requires you to think about housing differently as a place for you and your friends, as a place for you and maybe your significant other, and then ultimately, a place for family. That drives change. And so yes, it’s taken more time. And we talked a lot about this, you know, four or five years ago, that if you require a 20% down payment, it takes just a little more time to accumulate 20% than it would 3% or none, which is what the rules were for a short period of time.”
Leading up to the recession, some lenders lowered the 20% down payment standard or required no down payment at all.
The scars from the housing crisis now make lenders cautious of who they approve. In the first quarter, the median credit score of a new mortgage was 764, the highest in nearly two years and up from the prerecession average of 720, according to Gluskin Sheff.
According to Moynihan, there’s still wiggle room to ease regulations.
More from Akin Oyedele:
- Bank of America’s CEO says a pre-crisis idea could make it easier for millennials to buy homes
- Americans have more debt than ever before — here’s what it looks like
- Walmart beats on earnings as online sales surge (WMT)
- Investors have found one group of winners from the retail apocalypse
- There are 2 powerful forces competing for supremacy in the stock market
Read more stories on Business Insider, Malaysian edition of the world’s fastest-growing business and technology news website.
✍ Sumber Pautan : ☕ Business InsiderBusiness Insider
Kredit kepada pemilik laman asal dan sekira berminat untuk meneruskan bacaan sila klik link atau copy paste ke web server : http://ift.tt/2qEOm0z
(✿◠‿◠)✌ Mukah Pages : Pautan Viral Media Sensasi Tanpa Henti. Memuat-naik beraneka jenis artikel menarik setiap detik tanpa henti dari pelbagai sumber. Selamat membaca dan jangan lupa untuk 👍 Like & 💕 Share di media sosial anda!
dengan itu Perkara Bank of America’s CEO says a pre-crisis idea could make it easier for millennials to buy homes
Kini anda membaca artikel Bank of America’s CEO says a pre-crisis idea could make it easier for millennials to buy homes dengan alamat pautan https://timesnewmalaysia.blogspot.com/2017/05/bank-of-americas-ceo-says-pre-crisis.html
Related Posts :
The movement behind the rose emoji that you probably don't know about- Here are the 6 best memes from Trump’s first trip abroad
- Here are all the times Facebook has copied Snapchat so far
- Professors at America’s elite colleges pick one book every student should read in 2017
- Former Ivy League admissions officer reveals how schools pick students
0 Response to "Bank of America’s CEO says a pre-crisis idea could make it easier for millennials to buy homes"
Catat Ulasan