- Former U.S. House speaker and potential 2012 presidential contender Newt Gingrich delivers the keynote address at the Multi-Unit Foodservice Operators Conference in Orlando, Florida, Tuesday, October 5, 2010. (Joe Burbank/Orlando Sentinel/MCT)
Gingrich wrong about required down payment
Says the new Dodd-Frank financial law requires a 20 percent down payment to buy a house.
-- Newt Gingrich in prepared remarks on June 13, Concord, N.H. at a meeting arranged by the Small Business Caucus at the Kimball Jenkins House.
Gingrich is not correct that the law mandates a 20 percent down payment. There is no such requirement. The only element of the law that even comes close to that is a provision that requires banks to hold on to 5 percent of the value of their mortgages so they will retain a stake in mortgages. There's also been a proposal by regulators to waive that requirement for highly rated mortgages, which would include those with a 20 percent down payment. But that proposal has stalled and that's a long way from what Gingrich said, that 20 percent down payments are required.
We rate Gingrich's statement False.
To read the full story: Newt Gingrich says Dodd-Frank law requires 20 percent down payments
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