The Cost of Tight Credit Since 2009: 4 Million Loans

It has been a common theme from industry analysts and home
sales and construction reports for at least five years; the recovery is being
hampered, probably unduly so, by credit standards which are unnecessarily tight.  Volumes have been written about why this is
true and what the solutions might be but no other source in our experience has
summarized the situation as starkly as the Urban Institute did in a headline
last week.

“Four million mortgage loans missing from 2009 to 2013 due to tight credit standards”

Urban Institute analysts Laurie Goodman, Jun Zhu, and Taz
George say that number is an estimate of the number of addition loans that
might have been made during that time period if credit standards had been
similar to those in 2001.  For borrowers with
anything less than pristine credit, they say, it is hard to get a mortgage

…(read more)

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