"The only no-doc loan
should require 100 percent down," she says, laughing.
On another front, the SBA's Low Doc program will be eclipsed by its no-doc Loan
"If someone asked us to do a no-doc loan
, we told them no."
You take an alt-A loan or low-doc or no-doc loan
, and there is no documentation of the borrower's income--then you can't necessarily get full goals credit for any of the goals that are income-based.
Typically they financed their purchase via a no-doc loan
. The assumption was that the housing market would continue to rise at the same rate it had in the recent past.
These brokers who built first-generation net branches--just like the borrower with no vested interest in his no-doc loan
with gift funds who will go into foreclosure without any heartache--walked away from our industry and allowed the first generation of net branching to be foreclosed upon.
As to technological innovation, the no-doc loan
systems and Realtor links, such as those tried by Century 21, Merrill, Dean Witter Financial Services Group, Inc.
Many of these took out loans during the Bush years when interest-only and no-doc loans
were there for the taking, and down payments were waived.
And when the supply of not-even-remotely-qualified borrowers was exhausted, the industry got more creative, and started using exotic products such as negative amortization loans, "pick-a-pay" loans and 125 percent loan-to-value ratio (LTV) no-doc loans
to make monthly payments on high-priced homes affordable (at least temporarily) to low-income, low-FICO[R]-score borrowers.
"The no-doc loans
and the stated-income loans - those are a thing of the past," he said.
(88) Fannie stopped acquiring low-doc or no-doc loans
At certain times our members wondered why we weren't offering no-doc loans
, but we stayed focused, and on purpose.