Expert says credit standards still too tight for mortgages
11/19/2010
By Credit.com Staff
When consumers try to obtain a mortgage these days, it's still harder to do so than with other types of credit, Quicken Loans CEO William Emerson told Reuters in a recent interview. As a result of the national economic downturn, many lenders are unwilling to extend credit to those who have ratings that would have qualified for the same loans with ease just a few years ago.
"Anytime you go through a difficult cycle things always get tightened and they probably get tightened too far," Emerson told the news source. "I would tell you we are probably there, we are probably tighter than we need to be."
Emerson also believes major lenders are unlikely to loosen those restrictions any time soon, the report said. The current lending minimums are likely to remain in place for at least the next two years.
Many lenders tightened restrictions because of the mortgage bust that saw many consumers default on their home loans and cost the industry billions of dollars.
