Well look at the Feds Debt to Income ratio! Would you give them a loan?
Yeah, this worked so well the last time.
Lending practices are the outshoot of long experience with lending results. It’s a business — one which which the government should not tinker.
What could possibly go wrong?
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Sowing the seeds of the next housing bubble. Learned nothing from previous debacles.
Give this about, what, 10 years and we’ll have another housing market bubble / crash.
I already saw this movie. It sucked. Zero stars.
Fortunately, Uncle Sugar can force taxpayers to back these worthless notes.
Being in banking, I remember the Ninja mortgage loans: No Job, No Income
Is that a bubble I see coming?
Giving mortgages only to those who can pay them back is raciss.
Not enough blacks are getting loans.
Mortgage Crisis Number .........................how many?
Isn’t this the same insane garbage that the Clinton administration implemented/forced on banks to make loans to unqualified people for about a decade and a half that eventually led to the so called “banking crises” which caused the global economic meltdown in 2008 before the 2008 election? You know, the one where Obama gave billions of TAX PAYER dollars to corporations to bail them out and keep them afloat after it was this insane democrat “pandering to the poor for votes” policy that was forced on the banking institutions to begin with?
get out of the banks that do this
Winning! It obvious that these rules have been holding back the mortgage market and the economy. President Trump giving the economy another boost.
Should infuse the market with lots of Lehman brothers type money.
The Debt to Income rule has always applied to conforming loans IIRC.
And during the Great Housing Bubble which came to its sad end in 2008, Conforming Loans were the very ones that had the lowest default rate.
Which is why lenders had learned to insist on conforming borrowers, until the financial world abandonded any vestige of good sense beginning around the year 2000.
Since it failed miserably the first time, let’s Double Down ok!
Modern times do not reward prudent lending. In the old days, the local banks made loans. If a loan officer approved a loan to Johnny Deadbeat, he would be called into the Bank President’s office for a dressing down, at least. But now, the loan officer says, “Boss, we already sold this loan and got paid, with interest. If Johnny defaults, it’s somebody else’s problem.”
“Good work, Freebish. There will be a little bonus in next month’s paycheck.”