No question that 6 years ago underwriting standards in America for home loans were so weak that its was only a matter of time before housing collapsed. Conversely, they have tighten so far now that an average American is lucky to even get an approval.
This has got to stop. We need to get back to a more reasonable standard that takes into account a borrowers complete financial picture and not only some few data points that some bean counter established. Housing has got to get healthy again and reasonable, available credit is the fuel in the tank that can make this happen.
Original Article for Reference:
Higher mortgage rates may mean easier credit