Mortgage lending rules so strict, even Bernanke can’t refinance

Former Fed head turned down due to his exit from central bank

New York /
Oct.October 03, 2014 09:00 AM

In the old days, Ben Bernanke would have walked into his local bank, talked to a loan officer and — given his position as chairman of the Federal Reserve Board and his lofty annual salary — likely have been approved for a refinancing of his mortgage.

In the automated world in which we live today, however, that has changed. Bernanke, at a recent conference in Chicago, told the crowd that he had been unsuccessful in trying to refinance his mortgage. He used his own example to argue that mortgage credit is tighter than it should be and not at all flexible, according to the New York Times.

Bernanke noted that when a change in pay structure occurs or an applicant changes jobs, it becomes more difficult to get approved for a refinancing. The latter is what tripped up Bernanke, who famously left the Fed this year and took a job at a think tank.

Bernanke and his wife live in a house that is currently assessed at $815,000, according to the Times. And the former Fed head gets paid $250,000 for a single speaking engagement.  [NYT] — Claire Moses


Related Articles

arrow_forward_ios
A photo illustration of Vishal Garg, chief executive officer, Better.com (Better.com, iStock)
Better.com CEO returns to role after Zoom layoffs controversy
Better.com CEO returns to role after Zoom layoffs controversy
(iStock/Illustration by Steven Dilakian for The Real Deal)
Black mortgage applicants’ rejection disparity surges
Black mortgage applicants’ rejection disparity surges
Milo Founder and CEO Josip Rupena (iStock, Milo Credit)
Crypto-rich but can’t buy a home? Now you can
Crypto-rich but can’t buy a home? Now you can
(Illustration by The Real Deal)
More than 14K LI residents in mortgage delinquency
More than 14K LI residents in mortgage delinquency
(iStock)
Mortgage rates hit 20-month high
Mortgage rates hit 20-month high
Report: U.S. rents surged 7% from October to November
Report: U.S. rents surged 7% from October to November
Report: U.S. rents surged 7% from October to November
Better.com CEO Vishal Garg
Better.com CEO “taking time off” after layoff saga
Better.com CEO “taking time off” after layoff saga
Better.com CEO Vishal Garg (Better.com, iStock)
Better.com CEO apologizes for botching layoffs, anonymously accusing workers
Better.com CEO apologizes for botching layoffs, anonymously accusing workers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...