The U.S. economic recovery is being endangered by a slowing housing market, as prospective homeowners with lower incomes and credit scores are finding it nearly impossible to get a mortgage.
Six years after the collapse of home prices, the mortgage-lending industry is going through an upheaval. Wells Fargo & Co. WFC, -0.35% has the largest share of the mortgage market, but CEO John Stumpf in an interview with the Financial Times last week said his company would be unwilling to lend to lower-income borrowers and those with relatively low credit scores. That is, unless regulators made it more difficult for investors to force banks to repurchase securitized loans.
via When the next housing bust hits, blame the bankers – MarketWatch.
