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Ben Bernanke Enters The Twilight Zone


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Ben Bernanke: I tried to remortgage but was turned down Former Federal Reserve chairman Ben Bernanke admits that he failed to remortgage his home recently, and suggests that banks aren't lending enough

Speaking at a conference in Chicago on Thursday, Mr Bernanke told Mark Zandi of Moody’s Analytics: "Just between the two of us, I recently tried to refinance my mortgage and I was unsuccessful in doing so.”

When the audience laughed, he added: “I’m not making that up.”

or did the Torygraph just take a story from the Daily Mash?

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“I think it’s entirely possible” that lenders “may have gone a little bit too far on mortgage credit conditions,” he said.

Bernanke, addressing a conference of the National Investment Center for Seniors Housing and Care in Chicago yesterday, said that the first-time home buyer market is “not what it should be” as the economy in general strengthens.

“The housing area is one area where regulation has not yet got it right,” Bernanke said. “I think the tightness of mortgage credit, lending is still probably excessive.”

I'm seem to recall reading somewhere he's got a house which cost near $1m, however I can't find any link and it could be faulty memory recall. I wonder if he's now not considered to be earning enough for the mortgage he has?

This is hilarious when you think about it, thank god this idiot wasn't in charge of global financial policy!

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Federal Reserve Chairman Ben Bernanke refinanced his mortgage last year, taking advantage of low interest rates influenced by the central bank.

Bernanke refinanced a 30-year mortgage at a 4.25% rate, according to financial disclosure documents released Thursday.

Nationwide, the average rate for a 30-year fixed rate mortgage was 4.45% in 2011, but recently fell as low as 3.49% in July of this year, according to Freddie Mac.

Low interest rates are a direct result of the Federal Reserve's policies, which have been aimed at stimulating economic growth since the financial crisis of 2008.

Not including real estate, Bernanke's financial assets totaled at least $1.07 million last year. His investments are rather plain vanilla, consisting largely of annuities and cash in checking and money market accounts.

That stands in stark contrast to some of his Fed colleagues. Financial statements released from 2010 show Dallas Fed President Richard Fisher owned more than 7,000 acres of land, $1 million in gold and even as much as $250,000 in uranium.

Some others had individual stocks in their portfolios.

Bernanke earned at least $150,000 in textbook royalties last year. His current salary, set by Congress, is $199,700 a year.

No idea what term is left on his 30 year mortgage but Bernanke is 60, perhaps his age and what ever is left on his mortgage is too big a risk.

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Bernanke mortgage, probably on prime market house - the great rescue. STR Bernanke.
At least it is all consistent, with bankers tightening up credit. Values/prices up another 25% in some prime US since 2012, but now bankers offering applicants less than they were 2 years ago.
‘Scared’ lenders, declining affordability making mortgages tough to obtain
September 16, 2014

It’s possible for would-be home buyers to get a loan, but it sure has gotten harder, and that’s because of lenders who are scared of legal and financial risks, as well as declining affordability, experts said Tuesday at a housing-policy summit in Washington.

“Lenders are running scared,” said Paulina McGrath, president of Republic State Mortgage, a Houston-based mortgage banker. “You have lenders constantly having to look over their shoulders.”


September 16, 2014,
Lenders’ willingness to back mortgages for younger and older would-be borrowers is being cut by regulatory, legal and financial uncertainty, said Jonathan Smoke, chief economist for Realtor.com, the National Association of Realtors’s site.

Citi, Goldman Sachs, others release stress tests

Published: Sept 15, 2014
[..]For instance, Bank of America’s latest adverse scenario features a U.S. economy with home prices declining 25%, compared with a 21% predicted drop a year ago. It also includes a 5.9% decline in Eurozone real GDP, compared with a 5% decline in the year-ago scenario.


Other US forum...
September 30, 2014 at 11:20 am

So far looking for a new place has been interesting. (I’m in the position as others here, with a landlord looking to sell… for too much). I went to the credit union to get pre-approved as I am approaching this move looking at rentals, buying, maybe buying my rental, or buying out of state. I have very high credit, a steady small business and healthy savings. I was a little shocked at how low the amount of loan they would give me was.

I had gotten pre-approved two years ago for almost 300k more with very little changing over these two years. So basically back then I couldn’t find anything decent and now I can’t look at anything decent. I just think the sellers are out of touch with reality at this point. The banks won’t even let me gamble on their shacks if I wanted to. The Chinese money is done. Investors are done. I think RE in 2015 is setting up to be ugly in SoCal.

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