Even Ben Bernanke can't refinance his mortgage

WASHINGTON, Oct. 3 (UPI) -- Even Ben Bernanke, once one of the most powerful people in the financial world, has trouble getting a loan.

Bernanke, the former chair of the Federal Reserve, now makes around a quarter of a million dollars for each speech he gives and just signed a lucrative book contract. But in a conversation with Mark Zandi of Moody's Analytics, Bernanke said even he had trouble with his bank.

"Just between the two of us," he joked, "I recently tried to refinance my mortgage and I was unsuccessful in doing so."

When the audience laughed, Bernanke let them know he was being serious: "I'm not making that up."

"It's entirely possible [lenders] may have gone a little bit too far on mortgage credit conditions," he said.

It's likely that Bernanke's bank troubles come because he recently shifted from a salaried position (his role at the Fed) to a commissioned job (all the speeches and books), so even though he has enormous earning potential, lenders still view him as a risk.

"The housing area is one area where regulation has not yet got it right," Bernanke said. "I think the tightness of mortgage credit, lending is still probably excessive."

Bernanke and his wife bought their house in the Capitol Hill neighborhood of D.C. for $839,000 in 2004, and it is currently assessed at $815,000, property records show.