(The $417K loans will allow up to 60% DTI)
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This is the part that ticks me off, and tells me we are nowhere near a bottom in the housing market or the credit bubble deflation.
If this were my money, I would allow no more than a 33% back-end ratio on people earning $150K or less. A 60% DTI ratio virtually guarantees a future default. The “foreclosure crisis” will not be over until all of these irresponsible loans are eliminated.
Still holding out until we see 28/33 DTI ratios, at least. Then we can call it a “tight” (used to be called “normal”) credit market.
