Welcome to The Times in Plain English   Click to listen highlighted text! Welcome to The Times in Plain English

Getting Loans Getting Easier

April 13, 2014
Plain English Version

????????One result of the “Great recession” was to make it harder for banks to loan money to homebuyers. New regulations limited the level of the risk banks could take.

The rules hurt borrowers who were prime or near-prime credit risks. Super-prime borrowers continued to get loans.

Bankers point out that many of the more risky borrowers were creditworthy. “Exactly the people that need the loans the most,” one said.

Nowadays more housing loans are being made. And more of them are going to prime and near-prime borrowers. And now even sub-prime borrowers are benefitting.

Banks are also granting more home-equity loans and lines of credit. This is partly because home values are rising. This leaves more homeowners with equity they can use.

Auto loans did not suffer as much during the recession. Most people kept making car payments even if not making mortgage payments. It is easier for a bank to resell a car that has been repossessed than it is to sell a foreclosed house.

Regulators are still careful about lending practices. A banker said, “Banks are relaxing their credit standards slowly and carefully.”

More credit cards are being offered. A banker said when it comes to offering credit cards, “banks have gone pretty much back to normal.” However, borrowing limits are lower.

New rules make it much harder to raise interest rates on delinquent borrowers.

Source: The Wall Street Journal                                                                             March 29, 2014

Print Friendly

In Brief

Sitting, Standing, Moving: The Road to Health 

At some jobs, you stand all day. At some other jobs, you are sitting at a desk. Whether standing or sitting, eight hours of...

Protecting the Unborn and Newborn From Asthma

The number of people with asthma is growing. About 300 million people worldwide have it. About 26 million people in America have it. Only...

Too Many Antibiotics Can Make Children Heavier

Children who use a lot of antibiotics gain more weight than others. The weight they gain may stay with them into adulthood.

A study of...

Enemy of the Day: Sugar

The U.S. government is saying how much sugar we should consume. They suggest that only 10 percent of the average person’s calories should come...


  • dictionary
  • English Dictionary

Double click on any word on the page or type a word:

Powered by DictionaryBox.com
Click to listen highlighted text!