“I did not invent it,” exclaimed the former chairman of the Federal Reserve before a laughing audience. “I recently tried to renegotiate my mortgage, and I’ve failed,” said Ben Bernanke, whose remarks were reported by Bloomberg.
“It is likely that lenders have gone too far in the conditions for obtaining a mortgage, “said he added. Hard to believe when you consider that his fortune is estimated at between 1.1 million and 2.3 million according to official documents of the Fed
His analysis. “Real estate is a sector where regulation has not yet found the right formula. I think the hardness of regulations regarding mortgages is still excessive “
Blame it on too strict regulations
Regulation has become very strict on mortgages following the subprime crisis. Before the bubble burst, which led to the financial crisis, lenders granted unconditional loans to insolvent clients.
Before granting loans, banks and credit agencies use now a computer underwriting system. The latter is extremely strict, says the Wall Street Journal in an article where he wonders why Bernanke could not renegotiate its credit
Other advanced by the American daily reason. Former president of The Fed would be too large to be guaranteed by the federal government credit. In Washington, the bar has risen from 729,750 dollars to 625,500 dollars. Or credit Bernanke is estimated at $ 672,000. No responsibility for such amounts, refinancing is, indeed, complicated.
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