BookMark Us

Set Us Your Homepage

Some Mortgage Lenders Limited on Credit They Can Extend

On the heels of the news that home mortgage loan applications are down, Ben Bernanke took the stand to testify before Congress today. He is expected to continue his remarks, and they are likely to continue his addressing of the current US economic situation. The New York Times reports on his views on the financial sector, including mortgage lenders:

“Financial markets remain under considerable stress,” Mr. Bernanke said, in remarks prepared for delivery Wednesday morning to the Joint Economic Committee. “The capacity and willingness of some large institutions to extend new credit remains limited.”

This is troublesome to many. It means that even though there are some buyers out there, they may not be able to qualify for the loans that they need. While it is generally a good thing that mortgage lenders are requiring better income verification and better credit scores, some have overdone it and are making it very difficult to get through the home mortgage loan approval process.

Bernanke also warned that the economy is likely to see very limited growth, or even contracted growth, throughout the first half of 2008. He did express optimism for the second half of 2008, and suggested that a “sustainable pace” for growth could be seen in 2009.

Some of the problems Bernanke expects to see in the near future include the following:

  • Unemployment rate to rise.
  • Payrolls to fall.
  • New home construction to continue its decline.
  • Inflation will likely be a concern.
  • Continued strain on credit markets.

While there is no way of telling whether a recession has occurred until after the fact, some are already saying that our economy is in a recession. Whether or not this is the case, though, it is prudent to exercise caution and common sense in matters of debt and personal finance.

Tags: , , , ,
, ,

Tags: , , , , , ,

Comments are closed.


Goldparked.com Copyright © 2006-2009