Loan shopping has become very trying for non conforming loan limits/jumbo loans and not too many months ago lenders were giving the”wink wink” loans (stated income does not need to be verified) to buyers with low FICOS and no down payments. 

I have been on the telephone most of the day assisting my client “rate” shop.  We are searching for a 30 year fixed rate loan NOT a loan that is due in five years that she must then refinance at the current market rate (which could be anything!)  This client has excellent Fico Scores (high 700’s) and 10% down. 

I previously worked in mortgage banking and remember in the 80’s banks initiated the “no income verification” loan, which required a 25% down payment.  The thinking was that if you had excellent credit and 25% down it was a prudent loan – makes sense right? So, who in their right mind would lend their money to people with NO down payment, poor credit and in many instances not verify income?       Lenders have a tendency to swing back and forth with riduclously stringent lending practices AFTER “the horse has been let out of the barn”.  Seems like bankers and prudent investors seem to know you can pay now or pay later.

More mortgage woes!   Capital One said it will shut down Green Point Mortgage and eliminate most of the jobsby the end of year.