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foreclosures: Its The Underwriting, Stupid Part 2 - Clarification - 01/12/08 05:05 AM
Due to one of the comments on my last post "Its The Underwriting Stupid", I need to make myself a little more clear.
I'm not talking about the underwriters but the underwriting rules themselves. The underwriters were just following them. FHA underwriters today get all the same pressures, and had all the same time constraints yet FHA default rates have actually gotten lower. The reason is that HUD holds the lenders accountable and will cut them off from the FHA program if their default levels are too high. So if a lot of business comes in the door, underwriting times just get … (3 comments)
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foreclosures: Its The Underwriting, Stupid - 01/11/08 10:29 AM
There is an article on the BusinessWeek.com site that confirms something that I have been thinking for some time. The author, Preshant Gopal, points out that some of the areas where foreclosures are concentrated are not the areas where adjustable rate mortgages are concentrated. In areas where the value bubble has burst, borrowers are walking away from homes whether they have an ARM or not.
I believe, and this article somewhat confirms, that the major problem has been the lack of common sense in underwriting the loans. People without stable jobs, or who used tactics such as adding the income of … (7 comments)
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foreclosures: FHA Mortgage Fraud Arrests - 11/10/07 02:08 AM
While everyone has their eyes locked on Congress as it tries to solve the massive problem of how mortgage brokers are paid, I would like to remind everyone about the real problem in the mortgage industry - fraud. When all the dust settles in the mortgage industry, I believe we will find that a large percentage of the foreclosures destroying real estate markets around the country have come from instances of fraudulent mortgages.
Professional "house flipping" rings have generated huge amounts of cash which they use to help in their efforts to drag straw buyers, inexperienced loan officers and real estate agents, … (3 comments)
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Carl Pruitt - http://FHALoanAdvice.com
Buford,
GA
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