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Wells Fargo has asked U.S. regulators to set a down-payment standard of 30% on mortgage.  Mortgage lenders could still offer loans with down payments lower than 30%, but those loans would be more costly to the banks because of the current 5% risk-retention requirement required by the banks for securitization. Most likely, lenders would pass those costs along to borrowers in the form of higher interest rates.

Posted by Steve Dinielli on January 13th, 2011 8:39 AMPost a Comment (0)

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