Here is a story that in todays climate it is impossible to believe. But it did happen... it was a different time and expectations were different. I use it to illustrate how things have not only changed but continue to evolve...usually for the better.
In 1974 I was a VP with a large regional mortgage banker. Among my duties were secondary marketing. I generally found investors, got their criteria for underwriting and the delivered loan packages to them. There was a large Mutual Savings Bank that was a good investor and we had about $50MM in loans with them (this in the days when the average loan size was 40,000).
Among their underwriting criteria (remember this is 1974) were:
1. Married couple under 40 you automatically discounted the wife's income by 50% for the event of children
2. The loan officer was supposed to ask what type of birth control they used. If the answer was rhythm or none then the income of the wife was not counted at all!
My how things change
Tempus Fugit
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