Mortgage Lenders Tighten Standards

Posted by John Lockwood on October 11th, 2005

According to the
Wall Street Journal, Mortgage Lenders are beginning to tighten the creative standards that gave rise to concerns like those expressed by Alan Greenspan. The Journal reported that Washington Mutual is tightening its qualifying guidelines for its option ARMs, while New Century Financial Corp is reducing the number of interest only loans that it will grant.

Thanks to Verdeo Funding’s Nicholas Yaholkovsky for pointing us to this article. Check out this week’s issue of Nicholas’ Mortgage Market Guide for more recent finance news.