http://www.parjustlisted.com/archives/2665#utm_source=feed&utm_medium=feed&utm_campaign=feed Your source for real estate news from the PA Association of Realtors® Wed, 08 Feb 2012 15:24:26 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.parjustlisted.com/archives/2665/comment-page-1#comment-283 Jason Tue, 01 Dec 2009 15:47:28 +0000 http://www.parjustlisted.com/?p=2665#comment-283 I don't disagree with the theory, but seriously, the problems we have in the real estate world didn't come from a failure to enforce sensible standards like 40% DTI ratios, it came from lenders having no standards at all and lending too much money to people who did not have the capacity to pay it back. Every time we see a negative housing report, we see some underwriting guideline change to further restrict lending. It's too late to change the current default rate, the guidelines and standards already in place are adequate to protect lender's future interests and making them tougher won't solve the mistakes lenders made in the previous 4 yrs. That horse is already out of the barn and these changes are akin to closing the barn door instead of chasing the runaway horse. I don’t disagree with the theory, but seriously, the problems we have in the real estate world didn’t come from a failure to enforce sensible standards like 40% DTI ratios, it came from lenders having no standards at all and lending too much money to people who did not have the capacity to pay it back. Every time we see a negative housing report, we see some underwriting guideline change to further restrict lending. It’s too late to change the current default rate, the guidelines and standards already in place are adequate to protect lender’s future interests and making them tougher won’t solve the mistakes lenders made in the previous 4 yrs. That horse is already out of the barn and these changes are akin to closing the barn door instead of chasing the runaway horse.

]]> http://www.parjustlisted.com/archives/2665/comment-page-1#comment-282 Melanie McLane Tue, 01 Dec 2009 11:22:58 +0000 http://www.parjustlisted.com/?p=2665#comment-282 I think we call this....back to the fundamentals of sound lending! I think we call this….back to the fundamentals of sound lending!

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