chastised banks are likely to be very much more frugal in home lending for the foreseeable future — and THAT more than anything is what likely ordains lower prices in housing, as the prices of 2007 were the product of the near - evaporation
of credit underwriting standards.
Some might argue that when too many players compete in a lending market,
credit underwriting standards typically suffer as lenders fight for loan opportunities, even though they all face similar costs of capital.
First,
its credit underwriting standards are less rigorous than Fannie Mae's and Freddie Mac's.