Housing Default Rates

“High Default Rates Prompt HUD Inquiry” [Sept. 25] serves to highlight the incompetence of management at the Department of Housing and Urban Development.

There is no mystery about the reason for the high default rates of HUD loans. It is simply the fact that so many HUD homeowners have so very little invested in their properties, having moved in with insignificant, often zero, down payments.

Simply requiring a minimum down payment of 10% would greatly reduce the HUD housing mortgage default rate.

HAL WEBER

Glendale