After a three year period (2004 -2007) of declining credit standards the mortgage lending industry has had to fight and claw its way back into good graces with both their regulators and investors.
All this while swimming in a sea of undefined new regulation that has been thrust upon its already foreclosure burdened back with the introduction and implementation of the Frank Dodd Act of 2011 more commonly known as the Financial Reform Act of 2011.
In lending we refer to the our book of business that has been booked in any calendar year not unlike a winemaker refers to a vintage.
Mortgage Loans like Wines have good vintages and not so good vintages. Some you drink on only very special occasions while others may be more appropriately consumed from a paper bag. And just like the vintage you have vintner, some like me are better than others.
The best way to describe mortgage loans originated in the 2004 – 2007 vintage is “Smells of barnyard and tastes like, well … not recommended.” The Fermentation Daily Blog.
No surprise to learn than Banks have tightened Credit Policies
Christopher Thornberg, a housing economist at Beacon Economics in Los Angeles, “banks are doing what they need to do” to change lending standards in the wake of a “crazy bubble. “…”You had decades where credit standards were tougher than they are even now.”
Perception: You have to have perfect credit today to get a loan
The simple truth is that if you have a reasonably good credit history albeit not perfect but your credit says that you will more likely than not pay your bills you should be able to get mortgage loan in Raleigh. A reliable work history and even the smallest of money in the bank you CAN get a mortgage loan to buy a home!
While it is true that lending guidelines have tightened, most of what has changed today is the crazy stuff has gone away. By crazy I mean forget about Stated Income Loans, although the Federal Government have been waiving income verification requirements for some HARP loans.
FACT: It is easier to get a loan in Raleigh North Carolina than it is anywhere in the country today.
The Wall Street Journal obtained the data from individual lenders in accordance with the Home Mortgage Disclosure Act, which requires lenders to report such figures. The top 10 lenders accounted for more than 70% of loan originations last year, though a substantial percentage of those loans were obtained by the lenders immediately after smaller firms had approved the loans.
The analysis showed that denials increased in every state except Delaware and in all but nine of the top 100 metropolitan areas. Denial rates were highest in Miami, Detroit, and New Orleans, and lowest in Raleigh, N.C.; Bethesda, Md.; and San Jose, Calif.
- Two Raleigh Area Banks on the ropes (theraleighmortgageguy.com)
- How to Upgrade your Home in Raleigh (theraleighmortgageguy.com)
- Loans for First Time Home Buyers (theraleighmortgageguy.com)
- Once again Forbes names Raleigh #1 Place for Business! (theraleighmortgageguy.com)