[cudgy]

> The purpose of deposits is to reduce the risk of default. Banning deposits will simply mean that banks will give fewer loans, and loans which are granted will have a higher interest rate. This will only hurt the poor.

I disagree … having the deposit available to pay for unexpected expenses allows for a financial cushion for buyers after purchasing a home. Instead, many buyers are draining their savings cushion in order to just get the keys to a house and have little to no available cash to handle any financial disruptions.