1. First question for you...Are you from this country? 2nd question...Are you under 40?
These personal questions are wholly irrelevant.
2. 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.
There was no statement made questioning the existence of such loan programs in the past or present. It is clearly known that such loan programs were offered by a variety of lenders. The question was clearly stated:
What source is used that states or indicates that Fannie and Freddie invented loan programs with "No income, No asset, 100% financing"?
3. 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...
So far this is all about the Lenders and brokers. There is no info on or about Fannie and Freddie.
4. The loans were sold to F&F with their specific guidelines or we could not get the loan approved.
That is the is usual process. Were Fannie and Freddie guidelines "No income, No asset, 100% financing"?
5. 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.
Who told you to leave the persons Job information off the app, their salaries and no assets Bank statements, 401k's etc....? Were these Fannie and Freddie guidelines? If so, please demonstrate with a source document since such guidelines are usually public.
6. I had been doing loans for years...it was unbelievable what they did NOT have to have to get a loan.
Unless demonstrated to be otherwise, this, again, seems like what is requested by the Lenders.
7. 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...
Yes. This is correct. I am familiar with rate sheets and they are not difficult to find.
8. 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.
So, the time frame of the statement is moved to the present, after the bailouts, litigations and punitive settlements. Understood and agreed.
9. In those days, they made those loan to sell back to F&F, they had no intention of keeping that garbage...
Yes. It was garbage. These sort of loans passed into the GSEs, in most cases, through SEC violations and fraud.
10. 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?
11. 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!!
Please post the source document indicating or noting that Fannie and Freddie "are considering some type of no income loan again for the self-employed."
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