Dive Brief:
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Perhaps the best evidence to date that qualifying for a mortgage is an uphill battle is former Federal Reserve Chairman Ben Bernanke’s admission that he was unable to qualify for a loan to refinancing his own home.
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In a speech last week, Bernanke, who earns seven figures and owns a rowhouse on Capitol Hill in Washington, conceded that “it’s entirely possible [lenders] may have gone a little bit too far on mortgage credit conditions.”
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He added: “The housing area is one area where regulation has not yet got it right. I think the tightness of mortgage credit, lending is still probably excessive.”
Dive Insight:
Analysts call the “systemic shift” to sky-high credit requirements and conservative lending practices a reaction to the substantial fines and settlement fees involving government action against them for making risky loans in the past.