Shiller Sees Risk in New 3-Percent Down Program

Dec. 15, 2014

Many industry experts say it is a good thing that the FHFA is giving a push to first-time homebuyers with the 3-percent down mortgage package, but economist Robert J. Shiller sees risk.

Shiller tells CNBC that he has doubts about whether the low down payment program would be the best course of action, “because it’s only a 3 percent margin, if somebody defaults and they have to sell the house, they might not get all the money back.”