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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (145986)	11/6/2008 2:59:08 PM
From: geode00	Read Replies (1) \| Respond to of 173976

No, a no doc loan is a loan without documentation nothing more and nothing less. As I said, the lender can still appraise the property, get a big down payment if that is what they require, look at the buyer's credit rating. The lender assumes that the buyer will have enough income or assets to pay the monthly mortgage but the down payment and increased interest rate is enough to take on the increased risk. I know people with no doc loans who buy premium property. They have their own businesses and prefer to keep their affairs private and will pay the premium (and can afford to) for privacy. No doc loans have been around for a very long time. The loan structure isn't the problem, the lenders with little or no risk were the problem. California lenders used to make mortgages for 300% of income. That went to 750% of income (maybe more). That is verified income. Nothing about those mortgages were 'lies' they were just stupid loans made because the lenders had little or no exposure to default and because they thought(perhaps) the bubble was real.