Lower Downpayment Regulations Could Make It Easier For Millennials To Buy Homes

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May 19, 2017

Brian Moynihan, the CEO of Bank of America, told CNBC that eased regulations, such as lower downpayment requirements, would greatly help young homebuyers obtain a mortgage.

The housing industry is trying to up the homeownership rate, especially among Millennials, who are entering their prime buying years.

The recession led to tighter lending standards, but housing transactions with low downpayments were popular during the middle of the last decade. Some lenders didn’t even require a downpayment back then.

"Our goal, going back to regulatory reform, is should you move the down-payment requirement from 20% to 10?" Moynihan told CNBC's Kelly Evans. "It wouldn't introduce that much risk but would actually help a lot of mortgages get done."

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