Will All Lenders Lower Standards for More Volume?
I don’t think lowering the standards on some programs would be that terrible. Right now, we are lowering Down payments to close to Zero on Owner Occupants and allowing for stated income on NOO investor loans. We have forgotten the Self Employed who are being overly penalized and the investor who could easily have a much higher LTV…remember the 4 units with a 75/15 or 80/10…write the 10 with a shorter amortization to get it paid back…if someone has a good credit score, those will be repaid.
Heck, the other day for $hits and Giggles, I went to SOFI to see how much money they would lend me UNSECURED and at what rate. They agreed to lend me $100,000 at 10.15%. That could be a lot of 15% with a 75% LTV and buy a whole lot of 1-4 family property…
Just my 2 cents.
It’s all the appraisers fault
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