OFHEO's Lockhart Sees Pent-Up Mortgage Demand

Submitted by Ronald Tennant with Metrocities Mortgage:

Reuters (05/19/08); Krasny, Ros
Office of Federal Housing Enterprise Oversight (OFHEO) Director James Lockhart recently hailed a new policy on mortgage down-payment requirements for conventional, conforming mortgages from Fannie Mae as "sound" and one that could help release pent-up demand. The guidelines supercede stricter requirements adopted late last year that mandated higher down payments in markets where home prices are on the decline. After a May 16 speech at the Federal Reserve Bank of Chicago's bank structure conference, Lockhart told the assembled media: "It's still sound underwriting and makes sense in this type of market. They're doing it in a controlled and good manner. . . . They are trying to help people get into houses."