How tight is mortgage credit? The former Fed chair can't get his loan refinanced

by Ryan Smith03 Oct 2014
How tight is the mortgage market? Let’s put it this way: The former head of the Federal Reserve is having a tough time refinancing his mortgage.

Speaking at a conference in Chicago yesterday, Ben Bernanke gave the news to Mark Zandi of Moody’s analytics, according to a Bloomberg report.

“I recently tried to refinance my mortgage, and I was unsuccessful in doing so,” Bernanke said. “I’m not making that up,” he continued when the audience laughed.

Bernanke said that the housing market “is one area where regulation has not yet got it right.” He said it was “entirely possible” that lenders “may have gone a little bit too far on mortgage credit conditions.”

COMMENTS

  • by Nancy V | 10/3/2014 10:48:15 AM

    How is that even possible, unless he is underwater on his mortgage and wanted cash out. Was this a primary residence? Did he have a BK, collection, etc. I am really chuckling right now at this. Is he really asking, have LENDERS gone too far? Maybe he needs to ask DOJ and the CFPB that question as they continue to sue the pants off of the lenders. Until we all have written clarity from Cordray, they should keep turning down our "one size fits all" QM mortgages if they don't "fit".

  • by Mike Freeman | 10/3/2014 10:49:39 AM

    When he was Fed Chairman, he was an employee of the Federal Government and received a W2. Now that he has resigned, he is no longer an employee. He is now a "Self Employed" speaker for $250K a speech. Guides are if you are self employed and want a mortgage, you must have 2 years of your most recent tax returns to show your income in the same line of work. Mr. Ben doesn't have those. Yet.

  • by Michael Lasson | 10/3/2014 10:59:58 AM

    Good, maybe they will see what we are putting our clients through, its ridiculous!

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