“The old saying about skin in the game is all too true. With the four components of a loan being income, credit, property, and funds, taking the skin out of it makes the rest of the loan a far greater risk than say a 50% no doc loan, there are simply a number of other type loan products that could and should be reintroduced but in this current political environment those aren’t cool…

…I would rather move beyond the politics that favor the little or no down payments and put on our common sense hats and admit that a 100% no doc low credit score, interest lonely investment loan was irresponsible. But show me the default rate on a 50% no doc, interest only loan and I will show you a good loan. Interest only and no doc loans were never the culprits. It was the other irresponsible loosening of the guidelines for these products that made them bad loans.”, Comment from Mortgage Industry Veteran in Industry Newsletter, November 2014

Posted on November 20, 2014, in Postings. Bookmark the permalink. Leave a comment.

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