Sentences with phrase «lax loan underwriting»

Or consider housing, and how it became overbuilt because of lax loan underwriting, accommodative monetary policy, and a follow - the - leader mania.

Not exact matches

Obviously, we don't want to return to the lax standards of the housing bubble, nor should taxpayers be put on the hook for poorly underwritten loans.

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.

As borrowers swarmed to FHA - loans, defaults on its loans jumped and many observers worried about lax underwriting and poor loan quality.

There were a myriad of causes for the current housing problems, ranging from the Federal Reserve's zero interest rate policies, to widespread speculation on housing as an investment vehicle, to lax underwriting standards on subprime and no - doc / low doc loans.

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.