In spite of record low rates, lenders more cautious to issue loans than ever before

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  • Anti Government Alpine, UT
    Oct. 5, 2012 11:56 a.m.

    Diligent Dave,

    Appreciate the thought but realistically what drove this was Bill Clinton the the liberal idea that literally almost everyone "should be able to own a piece of the american dream...a home".

    As a result the govt got together with the Federal Reserve and their political appointees as Fannie and Freddie and cooked up a scam of artifically low interest rates and lax lending requirements and literally threatened banks with other penalties if they would not participate in this fraud on citizenry. As a result finanically irresponsible people saw many of their financially irresponsible neighbors buying/buliding new homes when there was plenty of used inventory available. Who wants old when you can get new.

    The market is overbuilt, people are upside down on their mortgage,s and/or people are bankrupt now and out of their home because your liberal govt buddies started the first domino in order to buy votes.

    Our economy and housing market is still in a shambles because of the fraudulent housing bubble and the liberal politicians who created it.

    Dodd Frank is little more than window dressing and a $25 billion tax on banks in order to play the game.

  • Diligent Dave Logan, UT
    Oct. 5, 2012 9:11 a.m.

    This story, though I believe the DesNews powers who pick stories, and make story placements are largely contrary to such evidence as this, supports Romney's assertion in the debate Wednesday evening, that Dodd-Frank is greatly flawed. He pointed out how Dodd-Frank promises to punish lenders who make loans they shouldn't, but doesn't define what those loans would be. Hence, lenders are further reluctant (outside of their own self-interest) to do so.

    The low mortgage rates now offered are the strongest indicator that demand for housing is dismal. And this proof that the birth dearth of the last four decades (since the early to mid 1970's) is the culprit.

    Homes need bodies to fill them. Sub-replacement birthrates of the boomer generation has resulted in two or three generations who have had too few babies to even replace each previous generation. This happened, also, prior to the 1930's. From around 1910 on, birth rates plummeted. Once in the Great Depression, they declined even further. News story this week on continually declining and lowest ever US birth rates show the same thing now. Unless birth rates increase, the economy will never recover!

  • Tekakaromatagi Dammam, Saudi Arabia
    Oct. 4, 2012 9:40 p.m.

    I am trying to understand this. The banks are willing to give me a loan (i.e. low interest rate), but they want to be sure that there is no fraud on my part and that I can pay back the loan. OK. From the title it appeared that there is a paradox. There is no paradox. The banks are willing to make the loans, but only to people who can actually pay them back. It goes without saying.

  • lost in DC West Jordan, UT
    Oct. 4, 2012 6:06 p.m.

    This is the anti-barney frank. It means no recreation of the housing bubble or economic collapse brought on by barney frank.

  • slpa1 West Jordan, UT
    Oct. 4, 2012 4:16 p.m.

    I was surprised how much information I had to provide my bank just to get a home equity line of credit. Despite nearly perfect credit, ample income, 20-year history with the bank, and all the required documentation, it was a long and difficult process. We did, after all that, get the line of credit.

    Despite the tough experience, I appreciate the re-tightened requirements, since it was the "no-doc" and sub-prime loans that created the financial disaster in the first place.