Rosengren, Eric

The Boston Fed’s position has long been — despite some determined mischaracterizations — that some flexibility in underwriting criteria may be appropriate if the borrower’s willingness and ability to handle the debt can be affirmed, and such flexibility is considered in a consistent and fair manner across applicants.

We have not, and do not, advocate for irresponsible or poorly underwritten lending. That perspective, however, is not at odds with advocating that the various participants in housing markets continue to strive for fair access to credit, appropriately extended. Nor is it at odds with our belief that responsibly underwritten loans to borrowers in low- and moderate-income areas — including those whose credit situation is considered “subprime” but can document their ability to afford the loan — are welcome and indeed crucial.