Federal regulators are proposing rules for the mortgage industry that could sideline millions of potential first-time home buyers who do not meet the proposed income and down payment requirements. The proposed ruleswould require a 20% down payment and limit a borrower’s debt payments to no more than about one-third of income. Critics say that this rule could be especially devastating in the northeast market where market prices are higher and a 20% down payment will be harder for those first-time home buyers to come up with. This MSNBC article goes on to say that “the proposed 20% down payment requirement could further shrink that pool of buyers, sending house prices falling further, which would result in more homeowners being underwater. This really could tip the scales in a way that would be very dangerous.” Read more