Summary:
Monthly condensed analyses of crucial real estate and economic issues offered by the UCLA Anderson Forecast and UCLA Ziman Center for Real Estate. Here, Stephen Oliner, resident scholar at the American Enterprise Institute and senior fellow at the UCLA Ziman Center for Real Estate, explodes the myth that only people with excellent credit can secure a home mortgage today.
Introduction:
The claim that mortgage credit is very tight for all but pristine borrowers has been repeated so often by respected policymakers and economists that it is now taken as fact. When Janet Yellen says that mortgage credit is hard to come by ― as she did at all of her FOMC press conferences last year ― people listen. The drumbeat about tight mortgage credit has continued this year, with commentary to that effect in the Fed’s Monetary Policy Report to Congress and the Administration’s Economic Report of the President. Economists outside the government regularly offer the same assessment.
This characterization of today’s mortgage market, however, is misleading. The truth is that most people with a steady job and an average (or worse) credit score can get a mortgage. Many borrowers taking out home-purchase loans these days have less than perfect credit. The federal government has been more than willing to guarantee higher-risk mortgages, and it’s been doing a lot of business with lenders that originate the loans and then pass the credit risk to taxpayers.
from AEI » Latest Content http://ift.tt/1S7c39K
0 التعليقات:
Post a Comment