NYT: “The credit pendulum is stuck at ‘stupid’”

Good piece in the July 10 NYT about how buyers who are good credit risks are being held to a higher standard.  No time to read it?  Here’s the gist:

“Everyone says this is a buyer’s market, but they wouldn’t let me buy,” said Dr. Komarovskaya, 30. “It’s not fair.”

Not fair, perhaps, but far from unique, brokers and agents say. The readiness of banks to sell foreclosed properties has led to rising home sales in some areas. But the traditional housing market, the one that involves willing buyers and sellers, is still dead, with transactions lower than they have been for decades.

And (love this quote!):

“The credit pendulum is stuck at ‘stupid,’” said Lou S. Barnes, an owner of Boulder West Financial Services, a Colorado mortgage bank. “I am turning down loans every day that my grandfather in his Ponca City, Okla., savings and loan in 1935 would have been happy to make. And he was tough.”

This entry was posted in Uncategorized. Bookmark the permalink.

2 Responses to NYT: “The credit pendulum is stuck at ‘stupid’”

  1. Jim Rake says:

    “the government, in correcting the excesses of that era, have gone too far in the other direction”

    Welcome to America’s standard way of doing business! Do we ever learn? How many times have we witnessed this very practice in so many aspects of life?

    It’s accounts like these in the NYT that may grab the attention of law makers, and give them pause for thought, resulting in common sense adjustments to their “all or nothing” lending guidelines.

  2. I dunno. Tom Vanderwell on Mortgages Unzipped has this take on the article:

    “. . . this sort of “half story” journalism really bothers me. Is the mortgage world a lot harder than it was 3 years ago? Absolutely. But don’t tell lies and fabrications and half truths that make it seem worse than it is. Can people still get a mortgage? Absolutely! If you have a downpayment (as little as 3.5%), verifiable and stable income, are looking at buying a house that is reasonable for your income and debt levels and have decent credit, you’re good to go.”

    I tend to agree. Read his commentary on the whole article at
    http://www.zillow.com/blog/mortgage/2009/07/13/why-im-mad-at-the-new-york-times-and-their-view-of-the-mortgage-world/

Leave a Reply

Your email address will not be published. Required fields are marked *