Lending Policy

Millions of Americans have errors on their credit reports; do you? Key Points One in five Americans have an error on at least one of their credit reports. The FCRA gives you the right to dispute any information on your credit report which you believe is incorrect. Imagine the following nightmare scenario. You've found a house that checks off all your boxes and you've decided to buy it. When you meet with a loan officer to apply for a mortgage, you receive some bad news: your credit scores are too low to qualify for financing. This [...]

Why are loans so much harder to get with interest rates at their lowest levels in decades? Key Points This economic crisis caused by the pandemic has driven interest rates to rock bottom levels. Banks have tightened standards, becoming more choosy about their borrowers and asking a lot of questions. As public school teachers, Tori Smith and her husband have careers that should survive the coronavirus economy, but their mortgage lender wasn’t taking any chances. It told them that they would have to put down more money to keep the interest rate they wanted, then dialed back [...]

Banks say they are tightening lending standards even as demand for money falls. Key Points Banks are tightening lending standards across the board despite lower demand and as the Federal Reserve encourages lending. They said in a Fed survey that they are lowering credit limits and demanding higher minimum credit scores from consumers. Banks are tightening lending standards across the board even as they're being urged to get money to those who have been hit by the coronavirus pandemic, according to a Federal Reserve survey Monday. From commercial real estate to credit cards and autos, [...]