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Re: Another RE Bubble
Old 09-16-2005, 08:50 PM   #21
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Re: Another RE Bubble

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Originally Posted by justin
I'm curious about the mortgage in retirement too.* When I've tried to get a mortgage on non-job income (ie - self employment or rental income), they've asked for copies of last 2-3 years of tax returns to verify income.* Is this all you do instead of showing them paystubs or W-2's?*
It's even less than that. We apply online at Navy Federal Credit Union. My pension and my spouse's Reserve income wouldn't qualify for more than a tiny starter condo but our retirement portfolio is bigger than the mortgage and that's apparently all they care about. Last two refinances they didn't even bother verifying our mutual fund/brokerage balances. They did run a FICO score on us and were sloppy enough to include it in our copy of the data package.

I don't think that banks care much about the documentation any more. They do just the bare minimum to be able to resell the mortgage to FNMA or some other institution who'll repackage loans into collateralized debt obligations. As long as the bank gets their closing fees and resells the loan then they have zero risk.
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Re: Another RE Bubble
Old 09-17-2005, 06:03 AM   #22
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Re: Another RE Bubble

Quote:
Originally Posted by Nords
It's even less than that.* We apply online at Navy Federal Credit Union.* My pension and my spouse's Reserve income wouldn't qualify for more than a tiny starter condo but our retirement portfolio is bigger than the mortgage and that's apparently all they care about.* Last two refinances they didn't even bother verifying our mutual fund/brokerage balances.* They did run a FICO score on us and were sloppy enough to include it in our copy of the data package.*

I don't think that banks care much about the documentation any more.* They do just the bare minimum to be able to resell the mortgage to FNMA or some other institution who'll repackage loans into collateralized debt obligations.* As long as the bank gets their closing fees and resells the loan then they have zero risk.
I have never seen money so loose in my lifetime. Lenders will shower
cash on anyone with a pulse.

JG
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Re: Another RE Bubble
Old 09-17-2005, 10:25 AM   #23
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Re: Another RE Bubble

Quote:
I don't think that banks care much about the documentation any more. They do just the bare minimum to be able to resell the mortgage to FNMA or some other institution who'll repackage loans into collateralized debt obligations. As long as the bank gets their closing fees and resells the loan then they have zero risk.
Couldn't agree more ... and IMHO it'll be the banks downfall. As they are left holding the bag on many loans when things come unraveled.

This spring I am testing just how loose banks are. A tenant has been asking me sell her the house they've rented for ~9 years. They've had trouble paying 1k/mo rent ... as the 3 adults float from job to job. Now they want to carry a 200k mortgage. With poor credit it'll be interesting to see what - if anything - the subprime lenders will do for these people.

Stay tuned ....
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Re: Another RE Bubble
Old 09-18-2005, 09:07 PM   #24
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Re: Another RE Bubble

unclemick, in the continuing saga of San Antonio's struggle to get an NFL team and the current attempt to steal the Saints from NO, this appeared on the editorial page of todays SA paper. Damn that Lucy...
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