This is definitely a principal reduction, and one would think that this would eliminate the availability of second mortgages and 80/20 loans as we go forward.
We have seen a definite reduction in loan availability in these second mortgages, but it seems like some lenders are still willing to lend over 80%.
I’d love to see 20-30% down payment requirements on all mortgages. Maybe someday the govt will get out of the mortgage business and we can see what **real** mortgage rates and terms look like.
