Wasn’t this the purpose? To ensure some dimwit didn’t show up to buy a $300,000 house with a $20,000 down payment?
It was reckless behavior that got us into the mess over twenty years ago, and it’s reckless behavior that we need to stop.
“It was reckless behavior that got us into the mess over twenty years ago, and it’s reckless behavior that we need to stop.”
The reckless behavior stopped about a year into the financial crisis.
I work in this industry; people have NO IDEA what is going on now; more new regs are hitting January 1st.
What it is doing is simply pushing many smaller lenders to get out of the mortgage business.
The new regs DO NOTHING to help consumers.
The new regs will however be a bononza for trial lawyers. There are provisions that will let homeowners sue lenders if they go bad on a mortgage.
The dimwits were buying with $0 down. And adjustable rates. With no documented income.
“To ensure some dimwit didn’t show up to buy a $300,000 house with a $20,000 down payment?”
They buyer isn’t the dimwit in that scenario. Seems to me the people who are guaranteeing the loan are the dimwits.