Mortgage approvals are getting harder and harder to come by…even for the previous “good” borrower.

Lenders and the automated approval systems they use to approve borrowers underwent a major overhaul this month. On first blush one might think this was a knee-jerk reaction to the credit crunch, but there is more on deeper inspection. I also suspect that this is only the first salvo in an increasing tightening of mortgage lender standards across the board.

The 100% mortgage programs are really popular right now. The 100% mortgage is a loan program which requires no down payment. Therefore, trouble may be brewing.

Now on the surface a 100% mortgage this seems like a great idea. Since most surveys show the number one reason for not buying a home is no down payment, a 100% mortgage allows thousands the opportunity to be home owners. That is the pro for these no down payment loans. Now for the cons.

The dictionary definintion of a “shill” is: a person who publicizes or praises something or someone for reasons of self-interest, personal profit, or friendship or loyalty. Well, if that’s the definition then that is exactly what Presidential hopeful, Senator Dodd did yesterday in his press conference.

Who was he shilling for you ask?