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Monday, October 6, 2014

Ben Bernanke Can't Get A Mortgage. Why not?

Why can't Bernanke refinance his mortgage? "The problem probably boils down to this: Anybody who knows how the world works may know that Ben Bernanke has vast earning potential, and that he is as safe a credit risk as one could imagine. But he just changed jobs a few months ago. And in the thoroughly automated world of mortgage finance, having recently changed jobs makes you a steeper credit risk....That would seem to fit Mr. Bernanke to a tee. He recently ended 11 years of steady employment with the federal government, during which he earned a steady salary. Now, while his earning potential is vast, it is irregular, with an unpredictable stream of revenue from speeches and book advance payments." Neil Irwin in The New York Times.



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