I don't know how many of you were in the real estate/mortgage business in 1982, but based on events occuring in today's market, I feel like someone put me in a time capsule and shipped me back to the good ole days of loan originating.
Real estate agents brought their buyers to the "bank" or bank owned mortgage companies to apply for a mortgage for the home they just purchased. With them, they had 2 years' tax returns, pay stubs for 30 days, and the list went on. I sometimes had customers who would bring a box the size of a milk crate with them! All this paperwork was required on top of getting written verifications from employers, banks, landlords. There was your vanilla conventional loan requiring 5% down, FHA loans with 3% down and 100% VA. You either qualified or you didn't. There were no credit scores. If you had a 30-day late on a debt, sorry, too bad, see you next year...UNLESS you had the exrays from your vet proving the dog ate your outgoing mail and your car payment was in that batch.
In today's mortgage industry, gone are the No Doc loans that were introduced and we grew to love; most lenders are requiring signed 4506t's for Stated Income loans. We are going back to the basics...5% down for conventional, 3% for FHA, document income and assets. I'm OK with back-paddling but just don't bring back those 3-part carbon FHA applications. I threw my IBM Selectric away years ago along with Correct-O-Type.
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