National Mortgage News creates several newsletters each week. The weekend newsletter,
http://www.nationalmortgagenews.com/columns/hearing/ discusses the changing lending market, which has undergone massive changes in the past few weeks.
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Just how bad was the loan underwriting at Mortgage Lenders Network? One servicing official who worked there told us the privately held non-depository funded a "a ton of bad loans." He said underwriting was so poor that a 27-year old who claimed to be making $14,000 per month was approved for a $500,000 mortgage on a stated-income loan. The mortgage is now in default. For the full story and an update on MLN's woes read Monday's National Mortgage News.
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If stories like this are admitted in public, what type of evil stuff goes on behind locked doors?
You can't possibly compete with this stuff, PoP. Sit back and watch others take the ride.
re: owner-occupied vacancy rate. This last quarter was a record high (records began in 1959), and rental vacancy rate hit a record high about 3 quarters ago and has receded a bit. The combination means we need more household formation and less new construction. Sure, we could hit new record highs, but the underlying, fundamental issue must eventually be resolved.