Bernanke: even worthy borrowers can't get mortgages

[steve2470]

Source: Reuters

(Reuters) - Banks have become so restrictive in making mortgages that many worthy home buyers are being frozen out of the U.S. housing market, and lending practices are not likely to loosen any time soon, Federal Reserve Chairman Ben Bernanke said on Thursday.

Speaking via satellite to a banking conference in Chicago, Bernanke highlighted ongoing problems in mortgage finance availability, even though banks are much healthier now as the 2007-2009 financial crisis has receded.

"To be sure, a return to pre-crisis lending standards wouldn't be appropriate," Bernanke said. "However, current standards may be limiting or preventing lending to many creditworthy borrowers."

Lax lending practices, including "liars' loans" handed out to borrowers who provided little or no documentation for jobs and incomes, have been cited as a key contributing factor in precipitating the severe financial crisis.

Read more: http://www.reuters.com/article/2012/05/10/us-usa-fed-bernanke-idUSBRE84911720120510?feedType=RSS&feedName=topNews&rpc=71&google_editors_picks=true

[truthisfreedom]

1. Are our hearts supposed to bleed for them?

'Cause I just get the feeling the 99% isn't gonna break out the violins.

[dmallind]

2. Ermmm - most of the 99% would BE them

Two thirds of US families own their home. Two thirds of them have mortgages.

The ability to get one is as core a 99% issue as you can imagine, as few outside the 1% are wealthy enough to buy a home without one.

[truthisfreedom]

3. Sorry I wasn't clear... I was only speaking of the title of the article. Not the general problem.

[julian09]

4. They won't do anything to help the housing problem

might help Obama.They are waiting for the interest rates to go up, they don't want to loan at these rates. Mortgages are long term loans 15 to 30 years they are stuck with that small interest rate, they make more money by waiting for interest rates to go up.

[MindMover]

5. Sure, liars loans were the precipitating factor in a 16 trillion dollar meltdown.....

if you believe that one, I have some really great property in central Florida that is better than gold.....

The banksters want everyone to believe it was those low life 99ers that put the country in such dire financial straits.....


Someone hit the....

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[yardwork]

6. I agree with you.