Indeed, in 1995, just as he was getting into the thick of the spread of
low-doc loans, he founded Headlands Foundation, a nonprofit charity, in order, he said, to do things right.
In both cases, the share of
low-doc loans increased over the years, as shown in Figure 6.
Competition for subprime loan clients induced lenders to relax underwriting criteria and offer
low-doc subprime loans.
Can this risk be mitigated in the absence of basic due diligence (eg, no-doc,
low-doc loans) and under the pressure of predatory lending practices?
If you need a little more--say, $20,000-$100,000--check into bank loans, credit lines from banks, the SBA
Low-Doc program, strategic partners and other sources.
With a simplified application process, a loan for as little as $500 can be acquired through OWBO's
low-doc loan program.
At the NEMBC in Newport, Steven Cofsky, chief director of examinations, Massachusetts Division of Banks, Boston, said his department is "finding that a lot of fraud and predatory lending is not happening in stated-income or no- or
low-doc loans.
At the Subprime Lending Symposium, Scott Samlin, executive director of residential mortgage compliance for Morgan Stanley, New York, said he would "like to see specific programs [developed] around a reasonableness test" when it comes to no-doc or
low-doc programs.
GreenSource is an all-online,
low-doc broker program that provides loan decisions in less than two minutes.
