first_img 9SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr by: Louis BerylTwo months ago, Ben Bernanke, the former Chairman of the Federal Reserve, revealed that he had been shot down by lenders for a mortgage refinancing.The farcical circumstance made big headlines, mostly about the ridiculous tightness of credit markets.So it’s no surprise that when several of the largest US mortgage lenders recently announced plans to ease standards for borrowers according to new guidelines from Fannie Mae and Freddie Mac, Bernanke’s story was the first thing that came to mind.Bernanke himself admitted that credit conditions “may have gone a little bit too far.” But the fundamental roadblock he faced in our modern financial system has more to do with credit evaluations than credit conditions. continue reading »last_img