Hong Kong’s Banking Regulation vs. The US

We could really learn something from them.  “During the whole period from mid-1997 to 2003, when home prices fell by two-thirds, the available data show that no more than about 1.4% of all mortgage borrowers here fell delinquent on their payments by three months or more.”

Could that be because their loan to values are at 70%, meaning you have to put down 30%?  I would certainly so say.  You are a lot less likely to walk away from something that you have money invested in.  Here is another reason, “As in many other parts of the world, a homeowner who defaults on a mortgage loan in Hong Kong doesn’t just risk losing the home; the borrower’s bank savings and other assets are fair game, too.”

http://online.wsj.com/article/SB20001424052748703940704575088991903059412.html#mod=todays_us_money_and_investing