<title>One element contributing to tightened credit standards is lenders’ reluctance to originate loans offered to your government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. </title> <h2>Is Credit Too Tight? </h2> <p>Because loan providers have actually tightened their credit criteria, they're not serving a number that is significant of prospective borrowers. Borrowers with less-than-pristine credit and paperwork are struggling to obtain mortgages. Scientists during the Urban Institute estimate that if loan providers had used the exact same credit criteria that had been utilized in 2001 — before the loosening of requirements linked to the housing crisis — they might have released yet another 5.2 million mortgages between 2009 and 2014. 11 They realize that between 2001 and 2014, the wide range of borrowers with FICO ratings above 700 decreased by 7.5 %, the quantity with ratings between 660 and 700 declined by 30 %, in addition to quantity with ratings lower than 660