Fed governor: Tight underwriting puts up too many obstacles

Elizabeth Duke Echoing oh-so-many others who have pointed this out, Federal Reserve Board Governor Elizabeth Duke, speaking right here in Richmond, said that the pendulum of mortgage underwriting standards has swung too far in the other direction.

Now, she said, lenders are being too strict with their standards, and that’s slowing the housing recovery.

“Some of this tightening is appropriate, as mortgage lending standards were lax, at best, in the years before the peak in house prices,” she said. “However, the extraordinarily tight standards that currently prevail reflect, in part, new obstacles that inhibit lending even to creditworthy borrowers.”

Read her full comments right here.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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One Response to Fed governor: Tight underwriting puts up too many obstacles

  1. Nancy Prince Jackson says:

    Absolutely, I wholeheartedly agree. The door should have closed on many rogues in the mortgage industry before it did and now the banks are so scared to lend it is pathetic.
    I know we all have to make money to survive, however the banking industry has not been properly monitored for years.

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