Op-ed: Reasonable Lending Opens Door to Homeownership

RE/MAX CEO Supports New Federal Lending Policies in Op-Ed

June 16, 2015 // Franchising.com // DENVER – Friday’s edition of Investor’s Business Daily carried an Op-Ed by RE/MAX CEO Dave Liniger supporting recent government policies that mark a return to more reasonable mortgage standards.

FHA has reduced the cost of mortgage insurance, while Fannie and Freddie have said they are reducing down payment requirements from 5% to 3%. Many critics have reacted by saying this puts the country on the road to another housing crisis. However, the Liniger Op-Ed points out that the mortgage environment is much different today and new policies still require borrowers to meet a number of qualifications, which must be documented.

“What brought on the housing crisis was the popularity of loans that had low introductory rates or did not require verification of income,” said Liniger. “As a result of the crisis, lending standards went from too lax to overly restrictive. With recent changes, the industry is simply returning to reasonable practices that will allow ordinary people with good credit to enjoy the benefits of home ownership.”

Statistics demonstrate that down payments alone are not a reliable indicator of future default on a mortgage. The FHA has for years successfully insured borrowers who make a 3.5% down payment on a home purchase. Since it can take several years to save enough to make a down payment, FHA has been the route taken by many first-time buyers.

Because FHA has charged higher fees, many first timers have turned elsewhere for a mortgage or decided against buying a home entirely. According to the National Association of Realtors, the current participation of first-time buyers is 30% of all home sales, while the historic norm is 40%. Liniger says the housing recovery cannot be considered complete until this segment of the market returns.

“We shouldn’t punish today’s mortgage borrowers for the mistakes of the past. FHA, Fannie and Freddie are on the right track, supporting aspiring home buyers, the housing recovery and the overall economy,” Liniger added.

Housing accounts for 18% of our national GDP. More reasonable and accessible mortgages not only promote a strong housing market, but a sustainable economic recovery as well.

About the RE/MAX Network

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Over 100,000 agents provide RE/MAX a global reach of nearly 100 countries. Nobody sells more real estate than RE/MAX.

RE/MAX, LLC, one of the world’s leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE:RMAX).

With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $150 million for Children’s Miracle Network Hospitals® and other charities.

For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.com.

For the latest news about RE/MAX, please visit www.remax.com/newsroom.



Social Reach:

Viewer Response:

comments powered by Disqus


RE/MAX has been the leader in the northern Illinois real estate market since 1989 and is continually growing.


  1. Business Overview
  2. Franchise News

Franchise News Room »

News By Industry »

Hot Opportunities

Nestle Toll House Cafe by Chip Franchise Opportunity

Nestle Toll House Cafe by Chip
Nestlé Toll House Café by Chip is the only major, national dessert café...

Kids 'R' Kids Franchise Opportunity

Kids 'R' Kids
Kids 'R' Kids Learning Academies is a pioneer in the early childhood...

Batteries Plus Bulbs Franchise Opportunity

Batteries Plus Bulbs
Whether you're an existing multi-unit operator with a non-competing brand...

Kitchen Solvers Franchise Opportunity

Kitchen Solvers
As a Kitchen Solvers franchisee you will not need any prior remodeling or...

Taco Bueno Franchise Opportunity

Taco Bueno
At Taco Bueno, we continue to make Tex-Mex the right way. We prepare our...

Launch Trampoline Park Franchise Opportunity

Launch Trampoline Park
Launch Trampoline Park is an indoor sports and entertainment facility...

Wireless Zone Franchise Opportunity

Wireless Zone
Almost 25 years ago an instantly successful business began called...

Blue Coast Burrito Franchise Opportunity

Blue Coast Burrito
Bring a healthy alternative to traditional fast food to your location with...

A Franchise Update Media Group Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2016. All Rights Reserved. Site Hosting Provided By: wishVPS on FUMG3

In Loving Memory Of Timothy Gardner (1987-2014)