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Is the appetite for risk returning?

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Mortgage Professional America | 10 Dec 2015, 06:30 AM Agree 0
With FHA requirements dropping to 520 FICO and 3.5% down, it looks like Wall Street is ready to take on more mortgage risk – and originators should prepare to take on more clients
  • Concerned LO | | 10 Dec 2015, 09:22 PM Agree 0
    Two Things:
    1. CEO – Kevin Watters of Chase Mortgage Banking should be better informed about FHA guidelines. It makes sense he doesn't know the guidelines considering Chase has such a bad reputation in the mortgage industry. Lower Credit score borrowers have painstaking requirements to obtain a mortgage, many of them can't even fulfill those requirements, and also FHA requires 10% down for borrowers with FICO's under 580.
    From the FHA Handbook:
    If the Borrower’s Minimum Decision Credit Score or above 580 eligible for maximum financing.
    Then the Borrower is...between 500 and 579 limited to a maximum LTV of 90%.
    2. Probably so many other execs were not available to comment because they are too busy working on closing the mortgages that Chase knows they won't even bother to help so many people become homeowner's.

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