Those guidelines are a good start but to be honest they are still pretty loose (by my personal standards)…
No matter who has been recommending the guidelines, the fact is that they are not law. The reason that the guidelines are finally being put in place is due to the credit crunch that Bugs has mentioned many times over. As the secondary market continues to wallow, loan originators MUST do everything they can to restore confidence to continue to sell loans. That begins with stringent guidelines and a restoration of an underwriting process with teeth.
