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Morning Briefing: Remember ‘low doc’ loans? Something similar is back

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Mortgage Professional America | 08 Jun 2016, 06:49 AM Agree 0
Remember ‘low doc’ mortgages? Something similar is back… Home purchase sentiment at new high… Profits improve for independent mortgage banks…
  • | | 08 Jun 2016, 08:58 AM Agree 0
    Someone remind this bank what the definition of insanity is.
  • Mike Murray | | 08 Jun 2016, 10:29 AM Agree 0
    Please. If you read the article, you'll see these are not the same as the "no-doc" mortgages from about 10 years ago. They have a 40% down payment, a 700 FICO score and a 2% higher interest rate than prime. They're a 5/1 ARM and they're not interest-only. They're held by the lender (and any lender in their right mind would hold a 40% down payment mortgage with a 700 FICO score and a higher interest rate). To make a long story short, where's the risk? Only if it's in abusing this program that allows them to do it and I would hope the auditors wouldn't do that again. Now that's insanity!
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