“Do bigger loan files mean better loans? A fascinating article in the latest Mortgage Banking reviewed a study that showed the following: (a) 85% of all loan files contained 400-2,000 pages…

…(b) in 2010, only 3% of loan files had more than 800 pages, whereas 16% do today, (c) when looking at the number of loans with 500-900 pages, 52% of all conventional loans had them and 77% of VA loans had them.  What’s really eye-catching is that the 10 biggest loan files in the study contained more than 6,000 pages and the largest, for a jumbo self-employed borrower, had over 8,000 pages. Rules and regulations have led to fatter files, but the two obvious questions are these: (1) Is the borrower more protected now from bad lenders and bad loans, and (2) are these loans going to perform better?  Would anyone possibly answer yes to either question?”, Excerpt from September 2014 Mortgage Industry Newsletter

Posted on September 25, 2014, in Postings. Bookmark the permalink. Leave a comment.

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