Thursday, August 30, 2007

You know you're subprime when...

A classic from Broker Outpost: "You know you're subprime when,"

  • When the lender I used for your purchase is now out of business and now we cant get out of your 80/20 that is about to adjust to 12%?
  • When you need a stated income letter from the borrower stating what they do for a living (ameriquest) and they fax you "I HAVE A JOB. Signed Joe Borrower."
  • Your borrower walks in to your office in his Waffle House uniform and wants a stated income loan.(happened)
The Loan Officer Forum at Broker Outpost is a gold mine for finding out what was going on in the mortgage business during the bubble. You can find out that Countrywide would allegedly loan 95% LTV to a 590 FICO with no tradelines.

1 comment:

Anonymous said...

When you have a FICO score of 500 and it goes down to 400. But could give a rat's ass and you don't care about walking out on your troubled loan and the foreclosed house.