One out of five bank risk professionals now expect the approval criteria for loans to become less stringent, the third highest level ever registered for looser lending standards in the three year history of the FICO survey. (rismedia.com)
Even conventional borrowers with ARM and hybrid mortgages could face a crunch, especially those who stretched their finances to buy a home, those who took advantage of loose lending standards by taking out big loans without showing documented proof they could afford it, and those whose home values have plummeted below the mortgage amount. (content.time.com)
A major cause of the housing crash in 2006 and 2007 were poorly documented mortgages and very loose lending standards that contributed to the 4.9 million defaults that ended up in foreclosure, costing families their homes. (totalmortgage.com)