Burdened by Put-Backs, Banks Are Now Slow to Lend

Despite record low mortgage rates, thousands of would-be homeowners are being locked out of the market because Fannie Mae and Freddie Mac have been forcing banks to take back an increasing number of loans made during the boom years and sold to Fannie and Freddie. To protect themselves from such demands in the future, banks are ratcheting up credit and documentation standards for new mortgages.    Wall Street Journal   October 4, 2012