Comments on: 3 Things That Aren’t Quite Posts: http://genuinechris.com/2008/04/19/3-things-that-arent-quite-posts/ The Story of a Mortgage Lender Turned Freelancer Tue, 06 Jan 2009 13:48:37 +0000 http://wordpress.org/?v=2.7 hourly 1 By: David Shafer http://genuinechris.com/2008/04/19/3-things-that-arent-quite-posts/comment-page-1/#comment-526 David Shafer Wed, 23 Apr 2008 16:22:22 +0000 http://genuinechris.com/2008/04/19/3-things-that-arent-quite-posts/#comment-526 Agree with the sentiments of the post. Real Estate and Mortgage Originating joins the club with financial planners, insurance, stock brokers, etc. who despite having some fiduciary duties are able to look askance at what their advice does to their clients. But here is a question. In the conforming loan environment, what is the actual foreclosure rate for stated income loans? Isn't FICO scores more of an indicator of whether a person will pay back their loan than documentation? If it isn't then why do lenders drop the documentation requirements on loans for individuals with decent down payments and high (750 Above) scores? Agree with the sentiments of the post. Real Estate and Mortgage Originating joins the club with financial planners, insurance, stock brokers, etc. who despite having some fiduciary duties are able to look askance at what their advice does to their clients.

But here is a question. In the conforming loan environment, what is the actual foreclosure rate for stated income loans? Isn’t FICO scores more of an indicator of whether a person will pay back their loan than documentation? If it isn’t then why do lenders drop the documentation requirements on loans for individuals with decent down payments and high (750 Above) scores?

]]>