Mortgage Woes
Monday, September 27, 2010 at 5:09 pm
At the end of last week, GMAC Mortgage, the United States’ fourth-biggest home loan lender, now called Ally Financial, admitted it has broken the law by rushing to file foreclosures as quickly as possible, fudging the paperwork in the process. And the Ally revelation is presumed to be just the tip of the legal iceberg, with dozens of market participants cheating on their paperwork or ignoring the holes in others’.
And today, Zillow reported that banks and home loan companies will not grant mortgage loans to a whopping one-third of Americans. Since the subprime mortgage blow-up, lenders have refused to extend conventional lending products to the bottom 33 percent of credit-seekers, those with FICO scores of about 620 or less, even if they put down 25 percent.
The mortgage documentation at this place is really terrible. And such small portions!
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