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FHA Underestimates Mortgage Delinquency Rates

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  • joe | | 29 Jun 2012, 03:43 PM Agree 0
    A blind man could have seen this coming and the guys running the show couldnt? 55% DTI, 3.5% down of borrowed (gift ) money and 1 day at a job.... HMMMM, how was this supposed to end? Loan officers and the sheeple public at large are crying because they actually have to show income and leave the drug money under the mattress or season it in a bank acct until the deposit doesnt show for 2 months and our Underwriting is too tight?

    Have you seen that Canada just said 30yr fixed were too risky so their longest term is not 25yrs and highest LTV is 75%?

    What we really need is for all underwriting to take into account residual income like VA does. I can show in many cases how that 55% gross DTI after basic real life expenses (no fluff) will put someone upside down on their finances from day 1.

    Pushing the streamlines was the perfect way to make the FHA book of business not look like the steaming pile of shite that it is but You can only polish a turd so much folks and the secondary market isn't buying it... . Good, I'm tired of the bank bailouts anyway.
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