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Good news for the short run, but....

Started by 30yrs_RE_20_in_REO
about 8 years ago
Posts: 9877
Member since: Mar 2009
Discussion about
https://therealdeal.com/2017/12/01/relaxed-standards-open-options-for-home-buyers/ The relaxing of standards will certainly widen the pool of potential buyers, especially at the lower end. OTOH, this is exactly the type of thing which led to the 2007 crisis. It's also the type of thing which makes it much easier for people to walk away from properties (because they are already under water - when you take into account closing costs - as soon as their purchase is closed.)
Response by 300_mercer
about 8 years ago
Posts: 10570
Member since: Feb 2007

It is probably not the best time to be relaxing standards. The time to relax standards temporarily was when things were bad. No wonder there will always be boom and bust cycles.

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Response by ximon
about 8 years ago
Posts: 1196
Member since: Aug 2012

Not sure what the rationale is for these pretty fundamental underwriting changes. Doesn't make housing more affordable and may only result in thousands of new home owners with a major albatross around their necks, especially if these same owners can no longer deduct their student loans or be required to pay more for health insurance. Bad timing for a number of reasons.

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Response by LuxuryBroker
about 8 years ago
Posts: 66
Member since: Jul 2017

0% down plus $3500 credit to closing costs ... wonderful ... it's interesting how much stricter standards are in NYC for jumbo loans ...

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