Your father's bankers.....................

We have returned to an era of standards.  While it may be
old-fashioned and inconvenient, it certainly seems prudent and
responsible for a lender to make sure the borrower can repay. In
the long run, both parties, and their neighbors, are better served.

Latest evidence of tightening lending standards:

"At the same time, lenders today have tightened the requirements that potential homeowners must meet to qualify for mortgage loans. Real estate columnist Kenneth Harney, writing for the Washington Post, reported early this year that home loans originated for purchase or guarantee by Fannie Mae and Freddie Mac now carry average FICO credit scores in the 760 range. That’s a record-high. Loans insured by the Federal Housing Administration now have average credit scores just above 700.

"There was a time when lenders considered FICO scores of 620 to 640 good enough. In fact, that time wasn’t even that long ago - try the housing boom years of 2004 through 2006."

thanks REJblog