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Tight mortgage credit hurting the economy

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Mortgage Professional America | 01 Oct 2013, 06:00 AM Agree 0
Tightening mortgage credit standards are slowing down the housing recovery, according to two top economists
  • Patti | | 01 Oct 2013, 10:57 AM Agree 0
    If someone would change the qualifying ratios to reality(NET) instead of GROSS income the defaults would lessen and credit could loosen. This is so simple it scares me to post it. Tripping over a dollar trying to pick up a dime. NUTS! IF just one person in the Government would use this reasoning, they would uncover a huge gap in the underwritng standards.People cannot repay mortgages based on paper calculations when it is not even close to their take home green dollars, or residual requirements. We don't even consider such things as child care that is a huge amount of their regular payments each month. Among other things. Health insurance, car insurance, utilities. We need to treat the disease, not the symptoms. IMHO. speaking from 30 years of underwriting experience. Honestly I have seen mortgages get approved by automation that the borrowers couldn't afford a garden hose to water the lawn after the payment was made.
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