The gov't should let me fix the real estate industry

The gov't should let me fix the real estate industry. Here's how:'

1. First, I would make whatever banks have to service whatever loans they grant. No passing them off to Greece or Iceland.

2. Second, I would start adding one per cent a year or every second year to the down payment amount people would have to pony up, till everyone had to have at least 20% down. However, I would make savings for a down payment a before tax saving, as long as it was in a certified down payment account. The interest on the account would also be tax free.

3. HELOCs would only be allowed if the bank was able to certify that the funds were actually used for home improvements. No rolling in car loans, trips, boats, credit card payments etc. or taking out cash for something unrelated to the house.

4. Only certified appraisers would be allowed to appraise. No broker price opinions. No bank rules for appraisers.

5. No gov't bailouts for banks, no gov't guaranteed loans like FHA except for low income housing. Low income housing only for those with low incomes, who would be able to 'rent-to-own' by adding a down payment amount to their rent each month.

6. Get banks out of the real estate business, because they are artificially depressing prices. As long as they can do foreclosure sales & short sales & the gov't makes up the difference between what they are owed & what the house sells for, there is no incentive for the banks to allow prices to settle into a normal supply & demand mode.