The Mortgage Professor: Why will some lenders accept borrowers rejected by others?

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  • My2Cents Taylorsville, UT
    Oct. 11, 2013 5:04 a.m.

    There are many kinds of lending institutions with many different laws regulating how loans are made. High risk lending with no investment or down payment and manipulated closing law violations caused the home buying and building meltdown. Banks lost more money in unpaid fees than they did in interest on loans.

    There is still a dysfunctional lending program ongoing and its more personal and higher risk with no tangible assets involved to the person getting the money. Its called student loans and parents trapped into financail ruin for their participation in the student loan programs. Credit cards are next in line. Mortgage loans have become more restricted by the type of lender and demographic nationality of borrower and governemnt subsidies involved.

    How honest a bank or lender is and the big payoff to lenders is the "terms and condition" fees and charges on every loan they sell. Terms and conditions are the deadly undisclosed information most people don't get to see or get told about. By violations of terms and conditions and penalty fines a lender can recover the cost of loan in a few years and could care less about risk lending.