They will not do this as stated income loans along with increased DTI’s are and have been the holy grail for the run up (speculative) in housing prices over the past few years.
If you keep underwriting DTI ratio’s at 28% (what they used to be) and make people document their income to qualify for a home purchase, not to mention be required to make a down payment, you would see housing drop in SOCAL at least 75%and usher us into a major economic crisis.
Don’t worry this won’t happen as the big banks will be lobbying the hell out of the decision maker’s and padding their pockets to be sure of it….it’s all about the payoffs…
But in the meantime, it makes the FED look like they are doing their job. Always a day late and a dollar short….
