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'Zero Down' Loans Fed Real Estate Boom, Bust

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'Zero Down' Loans Fed Real Estate Boom, Bust

Analysis

'Zero Down' Loans Fed Real Estate Boom, Bust

'Zero Down' Loans Fed Real Estate Boom, Bust

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  • <iframe src="https://www.npr.org/player/embed/89140726/89140709" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

Earlier this week, presumptive GOP presidential nominee John McCain made remarks on the mortgage crisis. McCain pointed out that "zero down" loans were big contributors to the subprime mortgage crisis.

A boom in those kinds of loans got many Americans into homes — and now those loans are causing many Americans trouble.

In a speech on the economy, McCain said too many Americans were able to buy houses with little or no down payment, and that policy should move toward curbing that practice.

Steve Inskeep talks with Chris Arnold about how "zero down" loans and similar financing deals can — and have — become problematic, and about efforts to change regulations.