Banks Loosening Credit Standards…Let’s not loosen too much now.

Standardizing of mortgages and loosening the credit standards has definitely been a big help in the market recovery.  I’m not so sure though, that loosening significantly further is a good idea just yet.  I mean, let’s get into a comfort zone of our market so we all can get a solid footing of which way is up.

I’m all for a free-flowing market, however, once you loosen your belt it just opens up more room to eat beyond what you need.  I know many of us don’t want to go back to the bubble era of No Doc, No Job, No Credit loans in the early 2000’s.

Our market in Seattle seems to be moving along at a brisk enough pace to show where we are at currently is working in re: to current standards.  Now I know these Big Banks don’t make their decision based upon Seatown, but it just smells more like a money grab than anything if Banks start further implementation of a smorgasbord of loans they had in their arsenal before.  And just as the article mentions, improvements to credit will not show themselves in pricing,

…Capital Economics says “any improvement in credit conditions won’t be significant enough to generate actual house price gains,”

So keep on keeping on people in saving up and building a solid foundation of your credit and soon enough the mortgage crisis will be in the distance of our rear view mirror.

To read more visit: Housing Crisis to End in 2012 as Banks Loosen Credit Standards

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