Banks Keeping Lending Standards Tight
This headline from The Wall Street Journal certainly doesn’t make my job easier. If people in the media knew what they were talking about the headline would read “You Still Need to Document You Can Afford To Buy A Home.” And even if you are stretched you can still get a loan.
Yes, I do have to read through numerous guideline changes by different banks each week but it’s because people continue to commit fraud and the banks have to make sure they protect themselves against. Also, if they are finding a particular product is not performing well they need to change the standards or eliminate it completely.
I am by no means trying to say that I agree with everything that is requested in order to get a loan but whether we believe it or not there is a reason behind it. The sooner we accept this as the new norm, the easier it will be for all of us.