Thank you, HLS. Your posts are most informative. I guess I’m one of the few who are cheering the new JC limits. Self-serving, I know. Cheap loans with tight underwriting standards suit me like a glove, so I’m not ashamed to admit that I welcome them.

And, a bit off-topic: are you serious about the 60% DTI? Is the “I” in DTI gross income? If so, let’s see… a third goes to taxes, 60% goes to debt service, not much left there, isn’t it?

And, way off-topic: I have a fun anecdote about the “D” in DTI. A few years back, I was filling out a mortgage application, and the broker asked: “Credit card debt?”. “None”, I said. “Car payments?”. “No, don’t have those, either”. “Wow, you’re in great shape!”, she said. I was sitting there, thinking to myself “Should I mention that I have two kids in daycare, costing me over $2,000 a month? It’s like paying for a couple of Ferraris”. So, really, HLS, shouldn’t the lenders care about that? Anybody who has kids will tell you they’re way more expensive than any cars they’ve ever driven.