Lending standards were tightened byrnbanks and regulators in response to the rapid deflation of the housing bubblernand, according to Bloomberg, Bernankernsaid, “Irnthink it’s entirely possible” that lenders “may have gone a little bit too farrnon mortgage credit conditions.”  Hernacknowledged that the first-time homebuyer market is not where is should be asrnthe economy in general strengthens.  “The housing area is one area where regulation has notrnyet got it right.” </p

This is old news for market participants.  Frank Hanna, an Originator at Gateway Funding sums it up “In order to truly help the housing market and ultimately the economy we will need to see lending regulations strike a better balance between thern current defensive underwriting posture and common sense.”</p

Bloomberg headlined itsrnreport, “You want proof that it’s tough to get a mortgage? While CNN went so far as to underwrite Bernanke’srnloan.  They found that he bought hisrnWashington, DC home in 2004, paying $839,000 and it is assessed today atrn$880,700 although Zillow puts its market value about $80,000 higher.  His $200K salary as Fed Chair is history butrnhe commands as much as $250,000 per speech, consults at the BrookingsrnInstitution, and his last financial disclosure put his assets in the $1 millionrnto $2 million range (putting him way down the list of wealthy Fed Boardrnmembers.)</p

What we don’t know is whether Bernankernor Zandi made any real news yesterday.   

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