Ben Bernanke - Lower the mortgage lending standards | TigerDroppings.com

Posted byMessage
TJG210
LSU Fan
New Orleans
Member since Aug 2006
22168 posts
 Online 

Ben Bernanke - Lower the mortgage lending standards



Wow.......looks like they are really trying to push us off the cliff with this BS. I guess when money is lent to these folks and they can no longer afford the payments, the tax payer will again have to bail their asses out.

When will people learn that when they fiddle with crap like this it just makes the problem worse?

quote:

“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.


quote:

Fed officials have been outspoken about the need for government policy to help the market for single-family homes. This view has brought the Fed into a clash with congressional Republicans, who have argued that market forces should be allowed to work.


LINK







Back to top
Share:
TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16928 posts

re: Ben Bernanke - Lower the mortgage lending standards


quote:


“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.


This is right.

But it's not the fault of the banks. Congress has mandated it.

Politicians creating rules on finance is akin to hospital janitors performing brain surgery.






Back to top
Mo Jeaux
LSU Fan
NYC
Member since Aug 2008
13341 posts

re: Ben Bernanke - Lower the mortgage lending standards


quote:

when money is lent to these folks and they can no longer afford the payments


This statement does not necessarily follow. Not saying I agree with him, but he is saying that the standards went from too loose to too tight. I don't think he's advocating for a return to free money for everyone (in the mortgage arena at least).






Back to top
LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82812 posts
 Online 

re: Ben Bernanke - Lower the mortgage lending standards


quote:

Politicians creating rules on finance is akin to hospital janitors performing brain surgery.







Back to top
  Replies (0)
Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
40065 posts

re: Ben Bernanke - Lower the mortgage lending standards


I dont disagree with what he is saying. What he is saying is not the same as saying to loan money to people that cant afford their payments. There is a lot a B and B- credit out there that can afford homes that they cant get into right now.





Back to top
  Replies (0)
Baloo
LSU Fan
Formerly MDGeaux
Member since Sep 2003
44046 posts

re: Ben Bernanke - Lower the mortgage lending standards


quote:

“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.

agreed. Just don't package non-A paper as A paper. The problem was how they treated subprime loans on the backend, not the consumer end. They fixed the wrong problem.

Home ownership is a positive good for a society. You want it to be relatively easily to buy a home instead of renting. Home owners have a greater stake in society. Renters can, by their arrangement, take off at nearly any time.






Back to top
  Replies (0)
GoCrazyAuburn
Auburn Fan
Member since Feb 2010
15008 posts
 Online 

re: Ben Bernanke - Lower the mortgage lending standards


quote:

Politicians creating rules on finance is akin to hospital janitors performing brain surgery.



Damn well put sir.






Back to top
  Replies (0)
udtiger
LSU Fan
Louisiana
Member since Nov 2006
25510 posts

re: Ben Bernanke - Lower the mortgage lending standards


He should be shot for even mentioning this.





Back to top
  Replies (0)
Shankopotomus
New Orleans Pelicans Fan
Brian Roberts Fan
Member since Feb 2009
18305 posts

re: Ben Bernanke - Lower the mortgage lending standards


quote:

he is saying that the standards went from too loose to too tight


truth






Back to top
  Replies (0)
Pilot Tiger
Georgetown Fan
Washington DC
Member since Nov 2005
62365 posts
 Online 

re: Ben Bernanke - Lower the mortgage lending standards


I agree

the first place i bought in 2006, I was barely employed and it took me no effort in obtaining a loan

last year, I put 20% down, had an 800+ credit score and the underwriters were still holding settlement up hours before it was scheduled.

It was ridiculous and overkill imo






Back to top
  Replies (0)
prplhze2000
LSU Fan
Parts Unknown
Member since Jan 2007
31575 posts

re: Ben Bernanke - Lower the mortgage lending standards


throw out Cuomo's settlement over appraisals. The AMC's have really hurt the housing industry. I understand the need for preventing conflicts of interest of appraisals, but there are ways to do it without going the AMC route.

Do like the VA does. Just randomly assign them to appraisers on the list.






Back to top
baybeefeetz
the now
Member since Sep 2009
14234 posts

re: Ben Bernanke - Lower the mortgage lending standards


quote:

This is right.

But it's not the fault of the banks. Congress has mandated it.


quote:

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.


I was going to ask you for a link. I see nothing in the article you posted about congress mandating anything, but I do see this quote.

So are the janitors doing brain surgery here or not?






Back to top
  Replies (0)
UncleFestersLegs
Columbia MO
Member since Nov 2010
1390 posts

re: Ben Bernanke - Lower the mortgage lending standards


"At this juncture . . . the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained," Bernanke - March 28, 2007





Back to top
baybeefeetz
the now
Member since Sep 2009
14234 posts

re: Ben Bernanke - Lower the mortgage lending standards


quote:

At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency. We will continue to monitor this situation closely.


Do you deny what he was saying was true at that time regarding delinquencies?






Back to top
  Replies (0)
FT
Georgia Tech Fan
Aston Villa Supporter
Member since Oct 2003
15347 posts
 Online 

re: Ben Bernanke - Lower the mortgage lending standards


I can't get approved for a mortgage.

Granted I have no credit history.

frick Dave Ramsey and his "never use credit" theory.






Back to top
kingbob
LSU Fan
St. Amant, LA
Member since Nov 2010
18827 posts

re: Ben Bernanke - Lower the mortgage lending standards


Government: If it works, fix it. If it's a proven failure, double down.





Back to top
  Replies (0)
baybeefeetz
the now
Member since Sep 2009
14234 posts

re: Ben Bernanke - Lower the mortgage lending standards


quote:

frick Dave Ramsey and his "never use credit" theory.


Does he say "don't get credit" or "get it but just don't use it"?






Back to top
FT
Georgia Tech Fan
Aston Villa Supporter
Member since Oct 2003
15347 posts
 Online 

re: Ben Bernanke - Lower the mortgage lending standards


Don't get it. He says you can get a mortgage with no credit score. That's a lie. I'm 22 and make around 52k a year, have plenty to put down on a house (due to having no debts to pay), but can't buy one without credit and don't have any easy way to build credit.

I'm missing out on crazy good deals on homes right now.






Back to top
  Replies (0)
Blakely Bimbo
Alabama Fan
Member since Dec 2010
1108 posts

re: Ben Bernanke - Lower the mortgage lending standards


This is going to make everyone's day. This guy has had 2 foreclosures and 2 Bankruptcies.

quote:

The 61-year-old machine operator at a plastics factory bought a $170,000 house in Moreno Valley this summer that boasts laminate-wood floors and squeaky clean appliances. He got the four-bedroom, two-story house despite a pockmarked credit history. The last time he owned a home, Maldonado refinanced four times and took on a second mortgage. He put a Cadillac and Mercedes-Benz C300W in the driveway and racked up about $45,000 in credit card bills and other debts. His debt-fueled lifestyle ended only when he was forced into bankruptcy. His reentry into homeownership three years later came courtesy of the Federal Housing Administration. The agency has become a major source of cash for so-called rebound buyers — a burgeoning crop of homeowners with past defaults who otherwise would be shut out of the market.


LA TIMES

No wonder FHA is running out of reserves.






Back to top
tdt
Member since Nov 2012
477 posts

re: Ben Bernanke - Lower the mortgage lending standards


I do not understand how we just had an 18 month presidential campaign and no one talked about housing policy.





Back to top
  Replies (0)


Back to top