Sunday, February 7, 2010

I don't have a clue

This is scary.  We have several sites on the net and we get a lot of questions from borrowers and from underwriters.  What is going on in the mortgage industry?

The underwriters tell me that they are over cautious because of the Feds.  That is the scary part.  I mean that it is over the top!  I'm not going to go there because I would never stop.  I'm sure you have followed it in the news.  If you haven't send me an email and I will send you some news links and Government mandates.

We get questions about appraisals and resale dates and credit and income.  These questions would blow you away because they are all with in the guidelines but their loans are being turned down.

Even FHA is setting a minimum credit score.  They did not have one in the past.  What is so out of line about this new requirement is that it is so brain dead or out of touch with the real world.

Their new guideline is that applicants with a credit score below 580and below will be required to have a 10% down payment.  What is so out of touch is that no lender will do an FHA loan if the score is lower than 620.  It's like DUH?

I am very concerned about what is happening and so are the lenders and underwriters.  I'll be getting some insider info in the future and will share it here.  By insider I don't mean government stuff.  I hear all that is behind closed doors anyway.

1 comment:

  1. I have some great stories I would like to share with you too. The FEDs have really screwed over the banks, lenders, and the american people! We are so screwed and they just did it. No permission, no vote, or transparency.