Mortgage Banks offer Loans But Credit Guidelines Are Tighter
Wednesday, December 31st, 2008Despite complaints that mortgage lenders and banks are not financing enough of new home mortgages, bankers say there’s plenty of money to borrow if banks agree that you are worthy of credit. In the case of business clients, that means banks are happy to lend to growing companies that can handle the payments. The Fed cut interest rates, but how many borrowers are being approved for mortgage loans? Can borrowers with bad credit refinance into an affordable payment or will they lose their home to foreclosure?
But even where banks are lending to sound businesses, they are tightening standards on new mortgage loan programs. In a distressed economy, they say, and with the example of so many failed mortgages around them, it makes sense to demand more security from borrowers. In a recent article, Bill Williamson, division president for Bank of the West’s Portland said, “When times were better, we were willing to make some exceptions off our guidelines and policies for well-run, growing companies.”
