Under the Dodd-Frank financial reform legislation, banking regulators were asked to define a "qualified residential mortgage" (QRM) that would make that loan exempt from certain risk retention rules also adopted under Dodd-Frank. The panel was also asked if this QRM definition should include a minimum down payment. Among the respondents, most said the QRM should include a minimum down payment requirement.
"Contrary to concerns expressed by certain policymakers, only a small minority of our expert panelists believe that including a minimum down payment requirement in QRM would pose a threat to the housing recovery. The vast majority of respondents – 81 percent – believe that establishing a minimum down payment is a good idea and would ultimately foster a healthier housing market," said Pulsenomics founder, Terry Loebs. "This consensus is consistent with the spirit of the provisional QRM rule drafted by financial regulators, although only about one-third of our panel favors a minimum down payment standard of 20 percent or more."
Additional details regarding this portion of the survey are available at www.pulsenomics.com.
This is the 18th edition of the Home Price Expectations Survey. It was conducted from April 23, 2013 through May 2, 2013 by Pulsenomics LLC on behalf of Zillow, Inc.For full survey results and graphics, please visit Zillow Real Estate Research or www.pulsenomics.com. About Zillow:Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Buyfolio™, Mortech™ and HotPads™. The company is headquartered in Seattle. Zillow.com, Zillow, Zestimate, Postlets and Diverse Solutions are registered trademarks of Zillow, Inc. Buyfolio, Mortech, HotPads and Digs are trademarks of Zillow, Inc.