The recent revelation by former Federal Reserve Chairman Ben Bernanke about being turned down for a home refinancing loan should serve as a call-to-action to fix onerous lending standards, said Ronald Peltier, CEO of HomeServices of America—an affiliate of Warren Buffett's Berkshire Hathaway and the nation's second-largest full-service residential brokerage firm.
"We have to bring common sense back," Peltier said on CNBC's "Squawk Box" Tuesday. "The process is too mechanized. It doesn't allow for common sense to enter into the mortgage-qualifying process. The standards are just too high, along with the down payments."
Earlier this month, Bernanke told a housing conference he had tried unsuccessfully to refinance his mortgage.