[quote=Diego Mamani][quote]These are not “problems” – they are good things. It’s called “proper underwriting”[/quote][quote]had the same experience (…) Both our credits were above 800 + I’ve held the same job for close to 10 yrs.[/quote]
I think that “proper underwriting” would require that lenders be smart about it, and require somewhat less documentation from borrowers with ~800 scores, stable incomes, low LTV, etc.
These “smart” bankers went from lending money freely in NINJA fashion, to now being completely tight and giving everybody, regardless of creditworthiness, a hard time.
Both extremes are wrong.[/quote]
I think what lenders have learned in the recent cycle is that FICO scores and credit reports often lie. That is, all too often they are not good predictors of behavior where repayment of mortgage loans are concerned. How many people, after all, used their “high FICO” scores to buy more house than they could afford and then subsequently “walked away”? Apparently quite a few. So, if you want to blame someone for your underwriting woes, start with Fair Isaac (who designed a flawed product) and then move onto the folks with high FICOs who rendered the scores of dubious value. I’m still not sympathetic. I just don’t think you have a sense of history as to how mortgages were underwritten 15+ years ago. It was quite an ordeal – as it should be.
