It seeks to deliver pain in the bust phase to those who made
bad lending decisions.
Bad lending decisions have been around since the dawn of finance.
But the greater factor that Barry describes are the implicit bailouts where Greenspan threw liquidity at every crisis, which avoided the reconciliation of
bad lending decisions.
But it is also bad: We want banks to be banks, to make carefully considered credit decisions, and if they can quickly pass on their credit risk to public - market investors who are not in a position to monitor the borrowers, then they may make
worse lending decisions and increase the overall risk in the system.
Not exact matches
Although
bad credit scores are acceptable, it's within the discretion of a lender to conduct credit checks to facilitate the
lending decision.
Rather than your credit score,
bad credit lenders will look at the debts on a property to inform their
lending decision.
Our network of
bad credit lenders in Sault Ste. Marie do not rely on your credit score to make a
lending decision.
They do not negotiate with people below that level as this means they have poor credit habits that might make
lending them mortgages a
bad investment
decision.
However, they are always wary of significant financial risk by
lending to individuals with a history of
bad decision making.
Standards and guidelines change frequently on VA mortgages with
bad credit scores, so you should speak with a qualified VA
lending company before making any plans or
decisions.