The United States housing market has started taking on a greater amount of loan risk than it has in the last few years, but according to one leading organization, there is still room for the lending parameters and restrictions to be loosened in order to better benefit people who are looking to purchase a new place.
"Although credit was too lax during the housing bubble years, the pendulum has swung too far in the other direction […] although small progress has been made, significant room remains to safely expand the credit box," says a report from the Urban Institute. "The mortgage market could have taken twice the default risk it took in the first quarter of 2015 and still have remained well within the cautious standard of 2001–03."
Overall, the U.S. mortgage market is acting in a relatively cautious manner, an understandable reaction to the financial crisis and housing market meltdown that was caused, at least in part by, lax mortgage underwriting standards and the ease with which people could obtain subprime mortgage loans they could not really afford.
However, the standards have been loosened somewhat over the last few months, which means more Americans looking to buy homes are now able to obtain the mortgages needed to make that a reality. As long as more and more Americans are able to qualify for these loans, lenders will be there to provide the financial assistance they need.
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