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Unformatted text preview: from making standard mortgages, which typically have much lower down payments. Questions: 1. Why is the government imposing this retention rule? 2. Do you generally agree or disagree that the government should be in the business of deciding the contracts between private parties? 3. Assuming that this is a correct policy, should they set the down payment at 30% or the more traditional definition of a risky mortgage at less than 20%, where lenders typically require private mortgage insurance? 4. Why would Wells Fargo propose such a high limit? 5. Do you believe the claim that this would raise rates by 3 percentage points and cause many standard mortgages not to be made?...
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- Spring '11