I agree that, if we did only did one thing to avoid a repeat of the bubble, requiring much more real buyer money as a downpayment would be the right choice.
I don’t know what the right % is, but I am thinking 30%, with exceptions down to 20% if you pass a barrage of tests: you can prove that all the downpayment is yours or your immediate family’s; AND you can show that you will occupy the house as your main residence; AND the appraised value is the lesser of two completely independent appraisals, one of which is conservative, taking into account all sales, including REOs, short sales etc, and was conducted by an appraiser chosen by a representative of the ultimate investors. Regular fully public public audits of those conservative appraisals etc…
