Banks Remain Tight on Lending Standards
Lenders are Tight on Home Loans
“Domestic banks indicated that they continued to tighten standards and terms over the past three months on all major types of loans to businesses and households,” the Federal Reserve’s survey of senior loan officers said.
Looking ahead, the Fed said most banks plan to keep lending standards tighter than average levels over the past decade, but that should be expected given the reputation lenders made for themselves leading up to the subprime crisis.
This is definitely expected, however very unwelcome. These tight standards that banks now hold themselves to can only be compared to a farmer that depletes all the resources from the soil as fast as possible, then blames the grocery store for their loss in livelihood. The banks have been taking supreme advantage of the loose legislation for half a decade, and they are very irresponsible for doing so. Now, the hens have come home to roost, and the banks are acting irresponsibly in the other direction. Lenders are finding phantom reasons to decline even the lowest risk loans.
In an economy that the banks are majorly responsible for ruining, they are now proceeding to decline America by acting reactively and not responsibly. A retired American with a good bank account, credit score and income cannot get a loan to purchase a manufactured home, even though Berkshire Hatheway recently came out and said that they are a lower risk than a traditional home loan.
Banks and their irresponsible tight lending practices are sending ripples throughout an already brittle economy, and the ripples are effecting the working and retired alike.
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