As FHA appears shaky, new down payment requirements considered

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As speculation over a possible FHA bailout abounds, some analysts are questioning whether the FHA should require higher down payments to temper the risk of default on loans. Congress member Scott Garrett told CNBC that he believes requiring a greater down payment would keep borrowers who can’t afford to pay back their mortgages from getting the FHA-backed loans in the first place. But Hoawrd Glaser, principal of the Glaser Group and a former vice president of the Mortgage Bankers Association, said that there is no documented evidence to prove that higher down payments negate risk.