Now this is bizarre. Even though more mortgage loans are going “sour” and entering default, mortgage lenders are LOOSENING the requirements to obtain a mortgage.
Does that make one lick of sense as we say in farm country?
Reading down the article it seems that overall the delinquency rate is a little lower than normal overall so they’re gambling on lending to a few bad apples while picking up more home loans for their portfolio that will function just fine.
Entrepreneurs in the real estate world or wanting to dip their toe in will note this phenomenon and realize some bankers will be in a frenzy to unload these losses:
Some homeowners are calling it quits. “A surprising number of people are walking away from their homes rather than trying to save them,” says Mr. Crosby, either because the rate on their loan has jumped or because they owe more than the home is worth.
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