Mortgage Availability

Generali

When even the former head of the world's banking system is turned down for refinancing his mortgage to take advantage of lower interest rates you know that credit is still very, very tight:

http://www.bloomberg.com/news/2014-10-02/you-know-it-s-a-tough-market-when-ben-bernanke-can-t-refinance.html

Ben S. Bernanke said the mortgage market is so tight that even he is having a hard time refinancing his own home loan.

The former Federal Reserve chairman, speaking at a conference in Chicago yesterday, told moderator Mark Zandi of Moody’s Analytics Inc. -- “just between the two of us” -- that “I recently tried to refinance my mortgage and I was unsuccessful in doing so.”

When the audience laughed, Bernanke said, “I’m not making that up.”

“I think it’s entirely possible” that lenders “may have gone a little bit too far on mortgage credit conditions,” he said.

The Bernank gets $200,000 per speech that he makes.

thescouselander

That proves nothing. How much money was he asking for? Also, what is his credit rating like?

Generali

thescouselander wrote: »

That proves nothing. How much money was he asking for? Also, what is his credit rating like?

His house was bought for $800k+ in 2004 and is now worth $935k.

I have no idea what his credit rating is like but if I had to guess I'd say it's pretty bloody good.

He was turned down, I imagine, because he's now self employed, earning a mere $200k an evening for his time.

Like any self-respecting economist he would never pay down debt that he his paying almost no interest on!

Don't forget, this is Ben Bernanke not some Scroat wanting to up the re-mortgage on the ex-council flat to wee away.

chucknorris

thescouselander wrote: »

That proves nothing. How much money was he asking for? Also, what is his credit rating like?

He'll now have to wait longer before he can mew to get that case of buckfast and a plasma tv.

Generali

chucknorris wrote: »

He'll now have to wait longer before he can mew to get that case of buckfast and a plasma tv.

Perhaps the problem was that he wanted to buy a couple of cases of Special Brew too.

HAMISH_MCTAVISH

Generali wrote: »

When even the former head of the world's banking system is turned down for refinancing his mortgage to take advantage of lower interest rates you know that credit is still very, very tight:.

Or as has been noted about a million times over the last few years...

Mortgage rationing is still a very real problem.....:)

And it's not just in America.....

The (now former) Housing Minister, Grant Shapps, says he himself would have failed to get a mortgage had new proposals for the mortgage market drawn up by the City watchdog been in effect when he bought his home.

Speaking at the National House-Building Council's annual lunch, Mr Shapps said: "I think it was about the moment I realised that I wouldn't have a mortgage if the Mortgage Market Review (MMR) changes went through that I kind of thought that this might be going a step too far."

thescouselander

Generali wrote: »

His house was bought for $800k+ in 2004 and is now worth $935k.

I have no idea what his credit rating is like but if I had to guess I'd say it's pretty bloody good.

He was turned down, I imagine, because he's now self employed, earning a mere $200k an evening for his time.

Like any self-respecting economist he would never pay down debt that he his paying almost no interest on!

Don't forget, this is Ben Bernanke not some Scroat wanting to up the re-mortgage on the ex-council flat to wee away.

Yes, big numbers but everything is relative - he was probably wanting to borrow rather a lot of money.

As for his credit rating I don't think we can infer anything from Bernake's position. He may well already have a lot of credit for various reasons.

As for mortgage rationing I still say this is b******s. Banks are still lending to good customers. The lending criteria have tightened which will mean fewer people qualify but this is not the same as rationing. As an owner of shares in a couple of banks it is reassuring to see proper risk management at last.

lisyloo

Anecdotal: We are mortgage barred. DH is a high earner and we have good credit ratings however he is self-employed and the business has been running 1 year.
Doesn't mean anything.
It's always been the case that if you start a business and have no books initially you won't get a mortgage even if you are paid a lot.

Thrugelmir

Generali wrote: »

The Bernank gets $200,000 per speech that he makes.

And yet appears to have an interest only mortgage? :eek:

Expensive lifestyle perhaps.

Crashy_Time

Thrugelmir wrote: »

And yet appears to have an interest only mortgage? :eek:

Expensive lifestyle perhaps.

Or the whole story is a crock of nonsense to soften up the masses for the new realities? I love the term "mortgage rationing", a more appropriate term for where we are going will be "House price rationing" as not everyone can escape a Ponzi at bubble prices :money:

Crashy_Time

Double Post