HUD secretary concedes obstacles to home ownership

AP News
Posted: Jul 03, 2011 9:50 AM
HUD secretary concedes obstacles to home ownership

Housing Secretary Shaun Donovan says he thinks it's unlikely that home prices will continue to drop and calls it a good time to buy a home.

Donovan acknowledges that officials must find ways to provide access to home ownership that doesn't require a 20 percent down payment.

Donovan warns that officials must not "overcorrect" the problems that led to the housing crisis. He says the federal government can't go so far in the other direction of housing regulation that it effectively denies new housing for deserving people with good credit ratings.

The housing secretary says the Obama administration has made progress in resuscitating the housing market but acknowledges that "we are not where we need to be."

Donovan spoke Sunday on CNN's "State of the Union."