Credit tightening
October 25, 2009 | federal legislation, industry | Comments (0)From the story:
Taking home a new couch is not as easy as it once was.
That’s according to Louis Mohana, who says customers at the Bourg store that bears his name are having a harder time securing loans to buy furniture.
“We’ve seen it tighten up,” said Mohana.
At Bob Watts Furniture in Houma, loans are still readily available, but lenders are asking for more sources of identification, sales associate Kim Watts said.
Congress has created new laws meant to crack down on the unstable mortgage loans and deceptive consumer-credit practices that economists blame for the current national recession. But local and state financial professionals say they are fearful that the laws could have the unintended consequence of making it more difficult, time-consuming and expensive for consumers to borrow money.
That’s what bad regulations can do, make things more time-consuming and expensive.
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