Q: Gerald, in an earlier blog post, you said that mortgage lenders are more careful now than they were during the last housing bubble. How are things different now? Doug, Lancaster, PA A: Great question, Doug. Although I draw on my own experience operating my real estate business before, during and after the financial crisis, I’m learning more and more disturbing facts going through a study called The Role of Housing and Mortgage Markets in the Financial Crisis. One stunning thing I discovered from the research in that study was that 50% of the borrower information banks collected on mortgage loans during that period was incorrect! What that means is that not only were banks making careless loans but that […]
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