Banks lower lending standards again. WTF????????

[dixiegrrrrl]

Apparently no learning curve, eh?

JPMorgan and Wells Fargo have been relaxing standards on higher-priced loans for the past few months. Last spring, JPMorgan did away with its 640 minimumcredit score requirement for the Federal Housing Administration's streamlined mortgage refinance program. Wells has lowered its own credit score requirements to 600 -- a number widely considered to be in the "subprime" category.

Downpayments are dropping, too. In areas like Florida, where the housing crisis hit hard, JPMorgan is lowering the minimum downpayment to just 5%,from the previous 10%. For nonconforming jumbo loans, Wells had lowered its downpayment requirements to 15% from 20%. Bank of America has also relaxed some standards in the same hard-hit markets as JPMorgan, though no details were given.

JPMorgan and Wells Fargo have been relaxing standards on higher-priced loans for the past few months. Last spring, JPMorgan did away with its 640 minimumcredit score requirement for the Federal Housing Administration's streamlined mortgage refinance program. Wells has lowered its own credit score requirements to 600 -- a number widely considered to be in the "subprime" category.

and

And while Wells Fargo is targeting customers with less robust credit, it is doing so only with loans that fall under FHA guidelines. This way, the bank is not required to hold the loans on its own books, but can package them into bonds to sell to investors.

http://www.fool.com/investing/general/2014/02/16/will-bank-of-america-jump-on-this-rickety-bandwago.aspx

Lower down payments, lower credit scores and securitizing mortgages...EXACTLY what they did that created the housing bubble.

[vanlassie]

1. My Fox News loving father said last week: "the government is forcing banks to do this."

Since I bend over backwards not to bite at his bait.... I have no idea WTF he means by that.

[Mira]

2. Serving Mammon

it is so terribly wrong - setting up the people to line their pockets.

[democratisphere]

3. Desperation to get home sales up.

In a fake economy (specially in a Mid-Term Election Year) ALL of the numbers are manipulated to give the desired fake results. Next NO job will be required and there will be NO income verification; anyone and everyone will qualify. KA-BOOM.

[Boom Sound 416]

4. The reductions are still for fixed loans though, yes

[reformist2]

5. Here we go again. This is the only trick the banks/gov't have left to juice the economy, it seems.

[dixiegrrrrl]

7. Yep....trying hard to blow another bubble

England is doing the same thing, with Gov't guarenteed loans.

[ms.smiler]

6. Oh I feel like I’m so ahead of this scam now, here’s what PA residents should do:

As far as I know, the banksters are still using MERS as the mortgagee in these securitized mortgages. So home buyers in PA should purchase homes, make a few payments, then file a Quiet Title action in Common Pleas court since MERS is not a lawful mortgagee under PA law and the mortgage isn’t valid.

The only thing that invalid mortgage does is slander Title which comes with Treble damages, 3 times the value of the property. If someone comes to court and proves they own some amount of unsecured debt, it can be paid from damages with the balance going to the homeowner. If not, all the more money for the homeowner.

The banksters have stolen trillions in wealth from Americans and one way or another, it should be disgorged.

Homeowners are winning foreclosure actions and Quiet Titles every day across the country. I’m not the only one who knows this scam and is in court fighting and winning.

Have the banksters factored in the cost of those of us that know how to use their scam against them?

PA Statutes

21 P.S. §711 “Mortgagee” includes any person, partnership, association, corporation, society, organization or fiduciary, holding a mortgage against real estate in a city or county of the first class, and entitled to payment of the mortgage debt, or the heir, legal representative, successor or assignee of any of the foregoing.”