Pew Charitable Trusts Reports U.S. Mortgage Lending Standards Are Too Tight, Limiting Homeownership for Millions
The Pew Charitable Trusts has released a report indicating that U.S. mortgage lending standards have become excessively tight over the past two decades, significantly hindering homeownership for many Americans. The report highlights that federal policies, along with the standards set by government-sponsored mortgage giants Fannie Mae and Freddie Mac, prioritize risk reduction over mortgage access. This has led to a substantial decline in home purchase mortgages for applicants with moderate credit scores (600 to 699). For instance, in 2000, approximately 1.08 million home purchase mortgages were originated for individuals with credit scores between 601 and 660, but by 2025, this number plummeted to just 293,000, a 73% decrease. This trend cannot be solely attributed to improvements in the average credit score of the population. The tightening of standards, particularly after the 2007-09 Great Recession, focused on minimizing financial losses and risks, but has inadvertently shut out millions of potential bo... 
