The combination of a shrinking pool of financing, large inventories of unsold homes, negative regulatory changes such as Basel III, and a dwindling pool of qualified borrowers adds up to a continued decline in the rate of home ownership in the U.S. Please re-read your statment and you will see where the problem is.1) Shrinking pool of financing. I disagree with this. I understand the industry is going to back to proper standards of 20% downpayment and making sure whether the borrower can pay the loan back. And some of the big banks are looking at their leverage and reducing liabilities which is part of business cycle. This means others can step into fill the void.2) Large inventory of unsold homes. The homeowners are underwater and most of them don't want to drop the price. In my city what I see is no inventory not unsold inventory. If you are in detroit and have huge unsold inventory then it is for a reason. This has nothing to do with regulation but simply housing boom has bust.3) Basel III is global banking regulation.4) Dwindling pool of qualified borrowers. I think if you cannot afford to pay 20% down payment then I think there is merit to the argument that you should not be owning the house. The big banks have gotten even bigger due to the financial crisis. We shoudl really consider breaking them up. If not, Fed should seed capital 10 or 20 regional banks and then IPO them. The big banks are really not serving anyone except a very narrow group of welathy. That's one reason I use my credit union for most things including credit card. I am happy with them. They provide excellent services for free.
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