Banks have strongly tightened credit standards for loan applicants.
The Federal Reserve has made several substantial to proposed
mortgage lending regulations to ensure that lenders can not take advantage of borrowers
with less-than-perfect credit.
Assembly bills that were proposed in attempts to curb the worst
wave of foreclosure since the Great Depression have been greatly watered down or
killed completely in the Senate.
Due to the rising issues surrounding the real estate market and
the growing numbers of struggling homeowners, new-homes and respective builders
are facing reprecussions in sales.
The equity in American homes has dropped to its lowest numbers
since World War II, leading to many foreclosure issues and walkaways.
As home prices fall and banks tighten lending standards, people
with previously good, or prime, credit histories are also falling behind on their
payments.
|
|
Loan Amount |
Monthly Payment |
|
$150,000 |
$828 per month |
|
$225,000 |
$1242 per month |
|
$300,000 |
$1657 per month |
|
$500,000 |
$2761 per month |
|