[quote=bearishgurl][quote=davelj] . . . OK, let’s assume that the lenders are the American tax payers. Are you suggesting that We the People should have less strict underwriting standards than the typical private enterprise? That’s absurd. That’s how We the People ended up with the GSEs. So, contrary to your position, I think that if We the People’s money is at stake, the underwriting standards should be among the highest in the industry. I remain unsympathetic. . .[/quote]

Understand what you’re saying here, davelj. I received all my RE loans after being fully qualified and properly underwritten. I haven’t borrowed any mortgage money during the “loose lending” craze. And I DID have a Fannie Mae loan in the 80’s (10% down with PMI canceled after 14 mos). The rest of my RE purchase-money loans were made at 70-80% LTV.

I don’t recall ever being asked to supply more than one year of tax returns or any checking statements. If I WAS asked to provide bank statements, it was only for the balance. I could redact all the details before submitting. Of course, my/our employers were called before my/our pre-approval was issued (signed by an underwriter) and ALSO AGAIN on closing week. I have NEVER been asked the “source” of any funds I/we had on deposit and I have never had to resubmit any (previously “lost”) documents. I have always used a “direct” lender.
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Similar experience to mine. I’m self-employed and had to provide three years of tax returns, multiple months of multiple bank statements, corporate charter, flow charts of my entities, etc. etc. And my LTV is 60%. And I didn’t complain for a moment. In my view – and reasonable people can disagree – this is how it should be.