This is just more bad policy from the federal government.  They would have done far better to have raised the down payment for uninsured mortgages from 20 to 25%.  For instance, if a buyer has 50% down they are of absolutely no risk to financial institutions or themselves.  With large equity they have lots of options before they would ever allow the mortgage to default.  Is this policy designed to crash the real estate market?  Be careful what you wish for?