Former Chair of the Federal Reserve Unable to Refi Mortgage

If you’ve applied for a loan in the past few years, you’ve seen how strict the standards are now for qualification.

Well, the good news is that you’re not alone.

Ben Bernanke, former chair of the Federal Reserve, tried to refinance his mortgage recently. He was rejected. Bernanke reportedly told Mark Zandi of Moody’s Analytics at a conference in Chicago this week, “I recently tried to refinance my mortgage and I was unsuccessful in doing so.”

When the audience laughed, Bernanke said, “I’m not making that up.”

“I think it’s entirely possible” that lenders “may have gone a little bit too far on mortgage credit conditions,” he said at a conference of the National Investment Center for Seniors Housing and Care. He revealed that the first-time home buyer market is “not what it should be” as the economy in general strengthens.

“The housing area is one area where regulation has not yet got it right,” Bernanke said. “I think the tightness of mortgage credit, lending is still probably excessive.”

Bernanke, the father of quantitative easing—the controversial stimulus plan that some say helped pull the economy out of the mud—wants regulators to take it easier on applicants who are likely meet their mortgage obligations.

We agree!

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