From one extreme to another

Terry Glomski, Senior Portfolio Manager at Neuberger Berman, explains how the US mortgage market has evolved since the GFC. While lending standards prior to the GFC were too loose Glomski says the situation now is at the other end of the spectrum. It has taken close to 7 years for regulators to define and implement the new lending framework, which provides a stringent set of check boxes for lenders to follow. However, the new framework is inflexible and poses a significant challenge to credit worthy individuals wanting to access a home loan. Neuberger Berman estimates there are over 5 million Americans with good credit profiles who are currently being sidelined from the housing market. Watch the video for more detail: