Finding a lender that will loan you the money to purchase a home is difficult enough without the banks now wanting more money down.  For example Well Fargo and Company is asking the U.S. regulators to set a new down payment standard of 30%.

It does not seem Well Fargo the nation’s largest mortgage lender wants to lend money to the majority of home buyers.

 The new requirement obviously is aimed at preventing lenders from facing big losses in case the loans go into default.

Banks may continue to loan to home buyers with lower down payments than 30% however those loans would be more costly to the lender because of the risk retention requirements. The cost most likely will be passed on to the borrowers with higher interest rates.

This will make it impossible for many to purchase that American Dream and slow down sales. This is not the time to make it more difficult to purchase a home.