By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter and Bank Digest and Serena Lynn, Editor, the CCH Federal Banking Law Reporter and Bank Digest.
Fed Governor Elizabeth Duke said it is important to ensure that tight credit does not dampen the housing recovery and disproportionately affect creditworthy low-income and minority homebuyers. Without the participation of owner-occupants, Duke said, it will be difficult for many housing markets to recover.
Speaking Oct. 5, 2012, before the Conference on Distressed Residential Real Estate in New York, N.Y., Duke pointed to the results of the Fed's Senior Loan Officer Opinion Survey, which suggest that banks are less willing to provide mortgage credit now than in 2006 to borrowers with lower credit scores or smaller down payments. She noted that the boom-and-bust cycle witnessed in the housing market has resulted in an “unprecedented” volume of foreclosures and an “extraordinary” level of vacant and distressed properties.