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Any bets on the No-Doc loan making a quiet comeback?

New Renter says

Any bets on the No-Doc loan making a quiet comeback?

I don't think that will happen, although we are really making the private debt burden worse by encouraging people to get even more into debt.

The Minsky moment has arrived long ago, we just don't want to recognize it.

I utilizied the FHA refi program as I met the criteria (loan originated prior to 05/09 and no late payment history). Otherwise, it was no doc, no income, no fee, no assessment (they use original assessed valuation), and 'grandfathered' PMI rates, @ 3.5%. There is no lower interest rate point that will make sense for me to refi again in the future, so this is the final refi

PMI rates have gotten so high, that even at 3.5%, it wouldn't have made sense for me to refinance outside of this program

As far as the dwindling pool of borrowers, even with the dwindling rates, have no fear. The next greatest fool is waiting in the shadows. He is MR SUB 500 CREDIT SCORE MAN, and rest assured, the usfedgov will make sure to open the door for him next,,,,,and then, what? Prices will zoom upwards! Bwahahahaha

New Renter says

Any bets on the No-Doc loan making a quiet comeback?

No chance. Banks won't stick their hand into the dog cage twice in such a short period of time, maybe 25 years from now, but the wounds from the last dog bite are still fresh.

More likely, the government will attempt to subsidize mortgage debt in some way (increase in FHA conforming limits maybe?).