Ant-real estate lobbyists and federal regulators for mortgage and Boston real estate companies are debating what conventional mortgages will look like in the future. So far, it seems many are proposing 20% down, while real estate mortgage lending heavyweights such as Wells Fargo are advocating for 30%. The new proposals states that  federal banks that refuse to provide financing under these large down payment conditions will assume some of the risk and possible lawsuits on their own books when they sell the loans on the secondary market.

The Department of Housing and Urban Affairs and the Federal Housing Finance Agency have until the end of April to determine new mortgage rulesmandated under the Dodd-Frank financial reform bill last year. Depending on the decisions made in Washington, this could change the Boston real estate and nationwide real estate game in a huge way. However, the biggest question is whether or not we can turn back the hands of time and go back to an era where individuals save every last dime for years in order to pay a down payment on Boston real estate. This would put safeguards in place that we have not seen in over four decades.

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On the other hand, tightening credit even further may shift Boston real estate prices back to an adequate zone. Regardless of the effect, it will undoubtedly be a painful transition. The number of eligible buyers will certainly decrease and prices could shrink to match demands. The question is, can we bring Boston real estate values back without throwing the economy for a loop