The Cost of Tight Credit Since 2009: 4 Million Loans

By Jann Swanson

Posted To: MND NewsWire

It has been a common theme from industry analysts and home sales and construction reports for at least five years; the recovery is being hampered, probably unduly so, by credit standards which are unnecessarily tight. Volumes have been written about why this is true and what the solutions might be but no other source in our experience has summarized the situation as starkly as the Urban Institute did in a headline last week. “Four million mortgage loans missing from 2009 to 2013 due to tight credit standards” Urban Institute analysts Laurie Goodman, Jun Zhu, and Taz George say that number is an estimate of the number of addition loans that might have been made during that time period if credit standards had been similar to those in 2001. For borrowers with anything less than pristine credit…(read more)

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