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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (30236)	3/1/2008 7:22:55 PM
From: Ilaine	Respond to of 220044

I think one of the biggest problems was depending on FICO scores instead of traditional underwriting, which required not only a down payment but also proof of income and money in the bank. When we got into homeowning, you had to prove regular income with tax returns and pay records. You had to prove that you had a track record of on time payments with your other credit. You had to prove that the loan wouldn't take more than 25% of your income, then relaxed to 33%, then 40%, and finally no proof at all. And you had to put down a downpayment of 20%. The foreclosure rate for loans like ours is still less than .5%. Countrywide bought our loan from First Tennessee and kept it. The foreclosure rate for "creative financing" is about 3%, and rising. FICO can be gamed.