Dive Brief:

• The executive chairman of Toll Brothers last week called the federal government’s plan to reduce homeowner down payments to as low as 3% “a really dumb-ass idea.”

• The typical down payment for a high-quality loan is 20%, and last week’s decision to drop it significantly “doesn’t make any sense,” Robert Toll, founder of high-end home builder Toll Brothers, said during a speech in New York.

• Still, execs from big builders Ryland Homes and Pulte told investors the move will help builders sell more homes to consumers who couldn't previously qualify for mortgages because of the hefty down payment requirement.

Dive Insight:

Pulte reported flat earnings for the third quarter, while Ryland posted a lower-than-expected gain of 7.2%. Meanwhile, orders for Toll homes declined 6% in its latest quarter, which ended July 31.