Obiterdictum, appreciate your response. First question for you...Are you from this country? 2nd question...Are you under 40? For the board, are there any other Mortgage Brokers here that was working in loans in the 80's and 90's and later? I ask those questions because anybody working in the loan Industry during that time period, knows of these loan programs. So I am not trying to be an ass. Anybody on this board ever get a NINA loan? The NINA loan...no income, no asset loan were what got the mortgage industry into trouble. I have called a friend and will try and find an old rate sheet showing these programs. 100% ltv's...80% first mortgage, 20% second mortgage. Guidelines were given to Loan brokers (Such as myself) from our Lenders (Suntrust was one) These lenders would put their overlays (additional restrictions) to the original programs from F&F, then give them to us. The Lenders in those days, had to send Representatives from their companies to our offices (Staff meetings were held) so they could show us how to fill out the 1003 (Loan App). What to specifically leave off the 1003, so they could qualify...The loans were sold to F&F with their specific guidelines or we could not get the loan approved. We were told to leave the persons Job information off the app, their salaries and no assets Bank statements, 401k's etc. Anything having to do with income or assets was left off the loan application. I had been doing loans for years...it was unbelievable what they did NOT have to have to get a loan. By old standards to qualify for a loan, I mean...Debt Ratios of 33/38, 5% DP FICO scores of 660 or higher...Before FICO scores, it was manual underwriting...meaning, you had to have AA credit, No BK's, no collections or charge-offs..seasoning requirements for these items...meaning, most seasoning requirements were 4 years +, Foreclosures required 7 years, before you could qualify for a new mortgage. Their were strict regulations in place. I will try and find a rate sheet...it would show the loan program restrictions...By saying the TBTF banks would never make those kinds of loan on their own, I meant to say in todays environment the TBTF banks would not make loans that were not better qualified. In those days, they made those loan to sell back to F&F, they had no intention of keeping that garbage...Yes, Banks like Wells Fargo did not keep all the loans they made...They sold the bad ones to F&F (along with a few good) to get them off their books...What do you think they were being fined for over the last few years? At that time, 1 in 100 loans was audited by F&F...You are right, it will never happen again with the banks, but I understand that F&F are considering some type of no income loan again for the self-employed...Big Mistake! Again, appreciate your interest in the old days!!
AI
