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Mortgage standards of 1990s were normal and prudent - OC Housing News
invite response
2014 Oct 13, 12:06am 1,512 views 5 comments
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NDrLoR
2014 Oct 13, 2:34am
"I find it astonishing a group of intelligent bankers came up with the Option ARM and expected a positive outcome."
Intelligent?!
bubblesitter
2014 Oct 13, 2:40am
You mean pumping up values and giving more of your money to government in the form of property taxes was not a good choice?
Strategist
2014 Oct 13, 2:55am
Mortgage standards of 1990s were normal and prudent - OC Housing News
They were obviously normal and prudent. You know what loans we had?
1. Option Arms - stated income with good credit and minimum 25% equity.
2. Sub Prime - With minimum 25% equity and provable income.
These loans have existed even before the 1990's with NO adverse effects. Can we go back to normal and prudent lending please.
Thank You
Strategist
Strategist
2014 Oct 13, 3:11am
Sub Prime - With minimum 25% equity and provable income.
Think about that...
Why would you need a sub-prime loan if you had 25% D.P. and provable income?
The ones who took sub-prime before had very little D.P. and questionable employment/income.
Those were the loans they had for people with bad credit. When they started giving these loans to people with no equity, "no skin" and questionable income, all hell broke lose.
Lets go back to the normal and prudent lending standards of the 1980's and 1990's.
http://ochousingnews.com/blog/mortgage-standards-1990s-normal-prudent/
Lenders retreated to the normal, safe and prudent lending standards of the 1990s in the wake of the housing bust.
Source: http://ochousingnews.com/blog/mortgage-standards-1990s-normal-prudent/#ixzz3G29zHPjr
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