As I wear my mortgage broker hat today, I have found out that Fannie Mae now allows 100% gift for any and all conventional loan products.

Never before have they ever done this. FHA, VA and USDA have allowed it for years.

So, now you can get a 5% down payment loan with absolutely no skin in the game and be underwater.

Since it cost people money to sell their home because of commissions, possible transfer taxes, title, etcetera, are we asking for trouble?The “experts” blasted that this was one of the reasons that the bubble bursted.

And to add another layer, the CFPB under Dodd-Frank is asking the banks to take a “skin in the game” position on any loans they originate.

So if the regulators want the banks to do it but the largest conduit doesn’t require it from the borrowers, all I can see is the lenders getting tougher and the real estate market getting worse.

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