Pittsburgh Legal Newslog: Home Mortgage Credit Standards “Stuck on Stupid.”

Posted By Cliff Tuttle | July 11, 2009

Posted by Cliff Tuttle (c) 2009

Highly qualified home buyers are being excluded by many lenders due to overly-rigid credit standards adopted in response to the subprime meltdown last fall, according to the New York Times.

This has happened before and community-based thrifts, banks and credit unions made a niche for such borrowers. It may take a little time, but this phenomenon will happen again, subject to regulatory restraints. The article doesn’t say so, but well-qualified borrowers should look for portfolio lenders who do not follow Fannie Mae underwriting guidelines.

CLT

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CLIFF TUTTLE has been a Pennsylvania lawyer for over 45 years and (inter alia) is a real estate litigator and legal writer. The posts in this blog are intended to provide general information about legal topics of interest to lawyers and consumers with a Pittsburgh and Western Pennsylvania focus. However, this information does not constitute legal advice and there is no lawyer-client relationship created when you read this blog. You are encouraged to leave comments but be aware that posted comments can be read by others. If you wish to contact me in privacy, please use the Contact Form located immediately below this message. I will reply promptly and in strict confidence.

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