Dive Brief:

• The president and CEO of the Mortgage Bankers Association said this week millennials aren’t eschewing homeownership as much by choice as by circumstance.

• David Stevens, former Assistant Secretary for Housing, told the National Journal that stringent credit requirements, combined with a reluctance to make a financial commitment because of a lack of confidence in the economy, is keeping 20-somethings from buying homes.

• His four recommendations: First, mortgage lenders, careful to approve loans only for borrowers who have ultra-high credit scores, should loosen their standards, at least a bit. Second, the government should create pilot programs that reward first-time home buyers who agree to participate in counseling for budgeting and homeownership with a break on down payments or interest rates. Third, bankers should ease the standards for applying for a mortgage for a condominium. Finally, parents or investors should be able to front a young buyer the down payment for a first home—and to share the responsibility for making mortgage payments.

Dive Insight:

Stevens acknowledged that an overall reform of mortgage lending standards will not occur any time soon or all at once, but encouraged the private sector to lead the way.