House sales could recover more quickly if banks were willing to be a bit more loose in making mortgage loans, according to the head of the Michigan State Housing Development Authority.

MSHDA boss Scott Woosley is not asking banks to make risky loans, but says if they were to stop looking at historic generalities and were to focus narrowly on the buyer, they might be able to finance a higher mortgage.

Woosley knows the banks learned there lesson with the bad loan deals of the robo-signing scandal, but he says the current cautiousness leaves many people want to buy a home, having to come up with down payments of many tens of thousands dollars.