Lend more, Obama urges

In a meeting earlier this week, President Obama urged lenders to “explore every responsible way” to boost lending. Although the discussion was focused on small and medium-sized business lending, mortgage lending was also a topic. For more information, see Obama implores top bankers to increase lending.

No one wants to return to the days of loan applications by buyers who had neither job nor assets. But when people with good credit, 20% down, and a steady income struggle to borrow beyond the conforming loan limit, something is seriously wrong with the system.

Too many higher-end buyers are being denied loans that they would have received in the pre-boom years. Consequently, higher priced listings are languishing, and the market overall is not as vibrant as it could be. Let’s hope the bankers heed the President’s words and take appropriate action to allow a return to responsible lending practices.


Posted by Vicky Nann on 12/16/2009
Tags: loan banking market
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