Democrats Vote Down 5 Percent Rule
In a bid to stem taxpayer losses for
bad loans guaranteed by federal housing agencies Fanny Mae and Freddy
Mac, Senator Bob Corker (R-Tenn) proposed that borrowers be required to
make a 5% down payment in order to qualify.
His proposal was rejected 57-42 on a
party-line vote because, as Senator Chris Dodd (D-Conn) explained,
"passage of such a requirement would restrict home ownership to only
those who can afford it."