WE NEED YOUR HELP!
Please donate to keep ReaderRant online to serve political discussion and its members. (Blue Ridge Photography pays the bills for RR).
What ever happened to the policy of sticking to the topic of a thread? _________
I apologize for that. But hey, at least I helped Rick from having his loan fall through.
Anyway, back on topic. The credit crunch is about to be extended when the 'liar loans' will start showing the same level of default as the sub-prime loans.
In the mortgage industry, they are called "liar loans" — mortgages approved without requiring proof of the borrower's income or assets. The worst of them earn the nickname "ninja loans," short for "no income, no job, and (no) assets."
The nation's struggling housing market, already awash in subprime foreclosures, is now getting hit with a second wave of losses as homeowners with liar loans default in record numbers. In some parts of the country, the loans are threatening to drag out the mortgage crisis for another two years.
When I used to review this loans for a brief period of time in 2005 and 2006 I was amazed at how underwriters approved people working at Walmart and saying they made 6k a month. But those were the rules back then. You can say anything you want and you'll get approved.
A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb
The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond
