Armed Polite Society
Main Forums => The Roundtable => Topic started by: Ben on October 15, 2018, 02:03:15 PM
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Because this worked out so well the last time.
https://therealdeal.com/2018/10/14/no-down-payment-no-problem-boa-underwriting-10b-in-subprime-mortgages/
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The nonprofit uses “character-based lending criteria” to assess hopeful borrowers’ ability to pay for a mortgage despite poor credit history.
Doesn't a poor credit history show something about their character (in some/many/most cases ?)
Marks claims that there have been zero foreclosures in the loans NACA has originated.
I call BULLSHIT !!!
Since the 2008 crash, most banks no longer issue direct loans to subprime borrowers; instead, the institutions go through non-bank lenders specialized in high-risk loans. Together, BoA, Wells Fargo and Citigroup have loaned $345 billion to such lenders.
"We're not going to get stuck hold the bag this time. We're going to go after the 'institutions' we lend all this money to. But, we'll still take another .gov bailout."
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Because this worked out so well the last time.
https://therealdeal.com/2018/10/14/no-down-payment-no-problem-boa-underwriting-10b-in-subprime-mortgages/
"Those who cannot remember the past, are condemned to repeat it,"
-- George Santayana
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Time to re-read The Big Short.
https://www.youtube.com/watch?v=A25EUhZGBws
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It's not just BoA.
Fannie and Freddie relaxed the mortgage underwriting rules so companies are following suit with low-doc and zero downs like back in the the early/mid 2000's.
Brad
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My used to do title searches and audited loan applications for lenders online during the last debacle. She used to show me some of the applications she was auditing, expressing amazement that folks were actually qualifying when they obviously did not have the means to handle the loan.