What’s happening is a result of the increased foreclosures and delinquencies. With the sophistication of the technology available, high-risk loan features become more identifiable and quantifiable.
Helpful Hint: Note that 15-year loans are not subject to the credit score/loan-to-value price hits. Every time you shorten the term you reduce the risk.
Obviously, many of your clients can’t afford 15-year term mortgages, but think about shortening the term any time you can. It can help with loan approvals.
(Freddie Mac Bulletin, August 8, 2008)
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