No Ratio Loans

During the mid-2000s, mortgage lenders displayed an overzealous enthusiasm for granting mortgages just with a stated income declaration, and also no ratio loans (1) (2). The self-reported income information was not verified, so any exaggeration of income could result in an application being approved by banks and non-bank lenders (6). If borrowers desire to qualify, … Read more

Luxury Home Financing

What is luxury home financing? There are luxury home financing products available in the United States that are used to entitle borrowers to mortgages on properties without conforming to traditional mortgage guidelines (1) and cannot be delivered or negotiated with institutions like Fannie Mae (5) due to the fact that the loan amount exceeds the … Read more

Hard Money Construction Loans

Hard Money Construction loans Hard money construction loans were dominated by small shops that managed to compete well (3). Due to simple supply and demand (5), private money lenders were able to charge higher rates and fees because there was a high demand for money and very low supply (6) (8). Wall Street has paid … Read more

No Doc Hard Money Loans

no doc hard money loans The no doc hard money loans mortgage market has greatly expanded since the 2009 mortgage crisis with the passing of the Dodd-Frank Act. The reason for this expansion is primarily due to the strict regulation put on banks and lenders in the mortgage qualification process. The Dodd-Frank and Truth in Lending Act set … Read more

Are Stated Income Loans Illegal?

Are Stated Income Loans Illegal? Are stated income loans illegal? One of the many causes of the phenomenon known as the “housing bubble”, (1) was the stated income loans (2). To deal with the collapse of the housing market, the Obama Administration passed the Dodd-Frank Act (3) which prohibited the institute of the aforementioned loans … Read more

ITIN Mortgage Loans

ITIN Mortgage Loans ITIN mortgage loans are non-conventional loans (2) for foreign individuals who are not eligible for an SSN registration (3) and only possess an ITIN as their tax processing identification (1). The Social Security Numbers are identification codes (6) issued to eligible foreigners (5) and US citizens (4). Unqualified aliens with ineligibility to … Read more

Stated Income Loans In California

Stated Income Loans For California After the Dodd-Frank legislation piece was passed more than a decade ago (3), stated income loans initially disappeared (5) as they were partly blamed for the collapse of the housing market (1). Some years ago, the Trump Administration passed the S. 2155 (7) that even when it did not repeal … Read more

Stated Income Loans

Stated Income Loans Stated income loans for mortgages were one of the many causes of the disintegration of the US housing market in 2008 (1), called the “housing bubble” (2). Therefore, in 2010, the Obama Administration passed the Dodd-Frank reform legislation (3) which in practice prohibited to institute loans that are granted with the sole … Read more