Clients who have been doing loans with me over the past few years all felt the first hand how many documents lenders asked for nowadays. Personally, I think many new guidelines are not reasonable.
Well, they all stems from the guidelines set out by Fannie Mae and Freddie Mac and trickles downhill from there.
Finally, even Federal Reserve Board Chairman Ben Bernanke said Thursday that mortgage lending standards now appear to be “overly tight,” and are preventing creditworthy borrowers from buying homes. Some tightening of credit standards was appropriate to the lax lending conditions that led up to the housing bubble, he said. “However, it seems likely at this point that the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes, thereby slowing the revival in housing and impeding the economic recovery,” Bernanke said
The Fed’s survey of senior loan officers shows that lenders began tightening mortgage credit standards in 2007 and “have not significantly eased standards since,” Bernanke said.
The latest survey released late last month showed that banks were not making it easier to get a mortgage even though interest rates were at record lows, housing prices are starting to creep higher and foreclosures have dropped.
Bernanke did not offer any solution to the tight standards.
However, at least for our clients, we will try our best to make the process of getting a loan as smooth as possible for you and be here to answer all your questions.
Ultimately, helping you get the best interest rate and save money are our focus.
