Down Payment and Recruiting Programs; Conforming Changes

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Posted To: Pipeline Press

“Rob, in past decades, near the end of every credit cycle, lenders seem to head back down the credit score scale and seem to be more aggressive with underwriting guidelines. Are you seeing that out there?” Yup – same story, different year. There are investors out there hungry for more yield, so are willing to buy that product – which is fine. The issue becomes when risk and price are de-coupled, or LOs don’t realize that the two are linked. One thing that’s different this time ‘round is that some newer investors are working off models that weren’t “steeled” during the downturn, and therefore paint a rosier picture of risk, and servicing, than investors who suffered real losses. Investor and Lender Conventional Conforming Changes For…(read more)

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