But because overly stringent loan underwriting standards have replaced standards that were far too
lax during the boom years, people who have decent credit are often finding themselves shut out when they apply for a loan.
While others participated in investor - owned markets or were exposed to exotic mortgages such as option - ARMs and interest - only loans, and while some tolerated
lax underwriting standards, FHA stuck to the basics
during the housing
boom: 30 -
year, fixed rate traditional loan products with standard underwriting requirements.