Tight Mortgage Lending Requirements Produce High Denial Rates Across the Country

The analysis of 2010 mortgage data filed with banking regulators reveals that “the nation’s 10 largest mortgage lenders denied 26.8% of loan applications in 2010, an increase from 23.5% in 2009”. While lenders are working to refine their lending approval and due diligence processes to prevent another housing bubble, economists and housing market advocates alike are claiming the new requirements are too strict and hampering the housing market recovery. Denial rates in Idaho were 29%, Wyoming 26.8%, Montana 25.2%, and Washington 23.3%. http://on.wsj.com/labv30

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