So let me get this straight, you are now advocating the use of high ltv loans as affordibility products again???? Is that not what got the market into the mess it is right now?

Actually, these products were available in the mid-90’s bottom as well. It was not unusual for first-time buyers to purchase with 5% down. It simply required full documentation, conservative debt ratios and payment of PMI. That’s what I did.

It was not high LTV products that caused the problem. It was the complete disregard to assessing risk and requiring documentation of income and assets.

I believe that for many first-time buyers, that sometime in the next 2, 3 or 4 years it will make perfect sense again for them to purchase with 5% down, assuming conservative DTI ratios and real jobs.