Yesterday, Ben Bernanke said that Lending Underwriting standards are too strict. Finally.
Declining home values are causing 780 credit score borrowers to walk away from their homes. It's not stricter credit guidelines that are preventing foreclosures, it's because the guidelines are stricter that we have fewer qualified home buyer's who are NOT mopping up the excess supply of homes in the marketplace, causing decreasing home values and high credit score borrowers to dump their homes. It's a never ending circle of misery that will not correct itself until we get more qualified buyer's to buy homes.
Thank you Ben Bernanke! MAYBE now we will begin some movement the other way, AWAY from stricter guidelines.
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