Question by International: Stated income loans to people with good credit are essential for a recovery – can you push banks to start?
For the economy to recover banks must start lending to people with good credit who are willing to sacrifice a larger portion of their income for their mortgage. The old income to loan ratios dont work and people with great credit history will not default. What is essential is a higher down payment not tax returns! Stated income and low-doc loans have to come back and when they do the economy will bounce back instantly.
Best answer:
Answer by Ryan M
Stated income loans helped create the housing bubble to begin with. Those people who are willing to sacrifice a higher percentage of their income are a HUGE risk to the lender.
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