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"FICOs averaged 752 on closed conventional purchases."
See? MANUAL underwriting is working. Those with low or no FICO scores (loans which were previously specifically sought for purchase by the GSEs to meet Affordable Lending goals ) aren't even being considered for loan applications, so of course a higher percentage of mortgages are being approved. The uncreditworthy are being prescreened out, as it should be.
Same article.....
Quote:
Today's FHA buyers carry an average FICO of 686.
This is interesting because lenders have aggressively lowered their minimum FHA credit score requirements last year, with some lenders now allowing FICO scores as low as 580 FICO in order to get approved.
Plus, the FHA's Back to Work program gives FHA borrowers access to mortgages just 12 months after a bankruptcy, foreclosure or short sale, which typically makes for a low FICO.
This is interesting because lenders have aggressively lowered their minimum FHA credit score requirements last year, with some lenders now allowing FICO scores as low as 580 FICO in order to get approved.
Plus, the FHA's Back to Work program gives FHA borrowers access to mortgages just 12 months after a bankruptcy, foreclosure or short sale, which typically makes for a low FICO.
It's not "the lenders" who are accepting lower FICO scores for FHA loans; it's the federal government: FHA. And that's ill-advised. Giving mortgage loans to people who've already proven to be irresponsible money/debt managers? Get ready for another wash, rinse, and repeat of the 2008 mortgage meltdown. /SMH
It's not "the lenders" who are accepting lower FICO scores for FHA loans; it's the federal government: FHA. And that's ill-advised. Giving mortgage loans to people who've already proven to be irresponsible money/debt managers? Get ready for another wash, rinse, and repeat of the 2008 mortgage meltdown. /SMH
lol
Read much?
Quote:
With respect to guidelines for government-backed loans, however -- a category which includes FHA, VA, and USDA loans -- lenders weren't so friendly.
Just 7% of banks making government residential mortgages loosened guidelines last quarter. This is the same percentage as those which tightened.
Get ready for another wash, rinse, and repeat of the 2008 mortgage meltdown.
It's coming for sure. Regardless of how many nit wits they reject. When you cook with the same rancid ingredients, you get the same slop. They're underwriting with as little as 3% down. How stupid are they?
"Federally controlled mortgage giants Fannie Mae and Freddie Mac announced they’ll back loans to low-income Americans who put just 3% down, even though such loans have a high default rate."
Not bubbling because of bad loans - market conditions.
You know - those things you refused to anknowledge when blaming homeowners throughout this thread.
Quote:
This time around the unorthodox capital isn’t coming in the form of international investors piling money into the U.S. mortgage bond market,
creating a doomsday machine that cranked out home loans with very little scrutiny, but from domestic institutional investors, folks buying second
and third homes and serving as landlords, and foreign buyers stowing cash in American real estate.
Quote:
In other words, it doesn’t look like irresponsible mortgage lending is inflating real estate prices beyond their fundamentals, but that doesn’t mean another form of capital won’t.
It's coming for sure. Regardless of how many nit wits they reject. When you cook with the same rancid ingredients, you get the same slop. They're underwriting with as little as 3% down. How stupid are they?
"Federally controlled mortgage giants Fannie Mae and Freddie Mac announced they’ll back loans to low-income Americans who put just 3% down, even though such loans have a high default rate."
Not bubbling because of bad loans - market conditions.
When you write a loan for 3% down in a real estate market that is overvalued by 25% to 60%, You're writing a bad loan, period. It's called financial common sense. Try applying it sometime.
It's called financial common sense. Try applying it sometime.
I've applied it throughout.
Quote:
With half a decade’s hindsight, it is clear the crisis had multiple causes. The most obvious is the financiers themselves—especially the irrationally exuberant Anglo-Saxon sort, who claimed to have found a way to banish risk when in fact they had simply lost track of it. Central bankers and other regulators also bear blame, for it was they who tolerated this folly. The macroeconomic backdrop was important, too. The “Great Moderation”—years of low inflation and stable growth—fostered complacency and risk-taking. A “savings glut” in Asia pushed down global interest rates. Some research also implicates European banks, which borrowed greedily in American money markets before the crisis and used the funds to buy dodgy securities. All these factors came together to foster a surge of debt in what seemed to have become a less risky world.
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) aren't even being considered for loan applications, so of course a higher percentage of mortgages are being approved. The uncreditworthy are being prescreened out, as it should be.
