AgentIndustry News

Investors aren’t behind higher mortgage approval standards — lenders are

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Are you set up for success in 2016? Join 2,500 real estate industry leaders Aug. 4-7, 2015, at Inman Connect in San Francisco. Get Connected with the people and ideas that will inspire you and take your business to new heights. Register today and save $100 with code Readers. Takeaways: It's become increasingly difficult for some potential buyers to obtain a mortgage loan. This is because lenders -- not investors -- are applying mortgage approval standards beyond investor guidelines. These practices, known as credit overlays, are often cited as a reason for why some consumers are denied access to mortgage credit. Since 2008’s financial collapse and recession, many mortgage industry watchdogs have lamented how tight credit has become and how difficult it is for some potential buyers to obtain a mortgage loan. It may come as a surprise, then, to find out that some mortgage lenders are applying mortgage approval standards beyond the guidelines suggested by their inve...