THIS could change the Lancaster housing market

Due in part to “encouragement” from the Federal Reserve, more lenders are refusing to issue zero-down home loans.

On March 2, reacting to the distress in the mortgage market, a throng of regulators, including the Federal Reserve Board, asked lenders to tighten their policies on lending to those with questionable credit. Late last week, WMC Mortgage, General Electric’s subprime mortgage arm, said it would no longer make loans with no down payments.

It’s way past time. Now, will this then affect the size, vs. the quality, of big-box homes?