Friday, October 3, 2014

Bernanke Can't Refinance His Mortgage

How does the old adage from scripture go? ... We reap what we sow....

(Washington Examiner) Former Federal Reserve Chairman Ben Bernanke is having a tough time refinancing his home loan.

“I recently tried to refinance my mortgage and I was unsuccessful in doing so,” the 60-year-old top economist said Thursday at a conference in Chicago.

Bernanke said he was not joking, adding that home lenders “may have gone a little bit too far on mortgage credit conditions,” according to a report from Bloomberg.

It's not clear why Bernanke, who refinanced his Washington home twice before while serving as the chairman of the Fed, would be denied a new loan. As head of the central bank, he earned roughly $200,000 a year. He now is a fellow with the Brookings Institution and is working on a book on his time managing the central bank during the financial crisis.

But Bernanke has previously warned that lenders have set their credit requirements too strictly in the wake of the housing crash. In a 2012 speech he said that "it seems likely at this point that the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes, thereby slowing the revival in housing and impeding the economic recovery."

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Posted By: Chris Carmouche