Former Fed chairman couldn’t refinance his mortgage

Ben Bernanke argues that lenders may have gone too far on mortgage credit conditions.

October 3, 2014

The Wall Street Journal blogger Nick Timiraos poses the question: “surely a man with high income, lots of equity in his home, good credit and a solid net worth must be able to get a mortgage?” But for Ben Bernanke, the answer was no.

 

The blogger says the issue isn’t about credit standards today being unnecessarily restrictive, but a lack of nuance. Lenders have reportedly grown to rely heavily on automated underwriting systems and the requisite documentation of borrower incomes, which can result in the odd situation – like Bernanke’s – where a perfectly qualified borrower might find a loan officer who’s unwilling to process a loan.

 

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