Already, increased competition among mortgage providers has seen a fall in the average deposit demanded by lenders from 35% of the sale price to 10-13%.

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The report said challenges in raising a deposit were one reason for the fall.

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There has been a 95% fall in the number of mortgage products where the deposit could be as little as 5%.

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Back in the fall of 2005, the Federal Reserve, U.S. Treasury and the Federal Deposit Insurance Corporation (FDIC) realized that community banks were loaning funds to the housing and real estate markets at a pace above what these regulators thought as prudent.

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