Bernanke: No Subprime Woes

Yesterday, Fed Chairman Ben Bernanke was widely quoted about his views of the current and future impact of the subprime loan defaults.  A CNNMoney.com article quotes him as saying that the Fed has “seen signs of self-correction” through more stringent underwriting standards, which generally support his assessment that markets do a better job of allocating credit than does government.  He appropriately laid much of the blame of the subprime debacle on loose lending practices, but feels that there will be a minimal impact felt in the general economy.

 

Lenders with “nonconforming” mortgage products (think special circumstance and quick funding requirements) who stayed away from subprime lending are finding more funding opportunities happening now that many subprime lenders – who also offered nonconforming products – are no longer in business.

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