lending practices

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Tight Lending Standards Hindering Housing Recovery

Jun 27, 2011By

As the housing market struggles for footing and on-going regulation reform, mortgage lenders continue to maintain cautious lending practices that may be hindering the market's ability to foster any positive momentum toward recovery.   According to a report by The Wall Street Journal, the nation's 10 largest mortgage lenders rejected 26.8% of mortgage applications in 2010.  This is a 3.3% increase over 2009.  The increase is leading some economists to argue that lending standards are now too conservative making difficult for some qualified borrowers to obtain loans. "As the noose on credit availability tightens, credit is being choked off