Poor Credit Does Not Mean Salt of the Earth
Poor credit seems to be a very good indicator of character. More often than not, unless you have been hurt by job losses or medical issues, your credit reflects your capacity to be relied on. A lower score usually means you are unreliable.
As a matter of experience I can say from being on the frontline of loan origination and credit, that high credit score people are often some of the nicest and most reliable people I have met while some of the meanest and most difficult people I have met have had the poorest credit. Again, these are generalities but I will stand on this statement in 80% of the files I see.
Now it goes without saying, that the majority of Americans are extremely nice people. They work hard, try to do the right thing and want a better tomorrow for themselves and children. However, what I am finding out as I grow more pragmatic, poor credit people ( if they are not obviously and in someway handicapped ) are in a bad situation due to their attitudes.
Here's what I'm saying. It seems each time I see a credit report that is damaged it's usually from someone that also has an obvious ethical or other character flaw and is usually willing to blame someone else for the problems.
What's the message: The world should be getting tired of victimization and blame someone else for the bad credit excuses.
Jim Rogers "Let them go BK"
As of this writing date, one of our supporting loan originators on the frontlines has stated that Bank Of America is still doing stated income loans. Bank of America is now calling these loans "paperless" and not stated income. It's all repackaged under a new name but its the same old thing. The loan officer states that when the borrower is unable to qualify for the home loan on conventional terms, the loan officers will increase the income and the savings on the application to strengthen the file on paper and then rerun the application through BoA's automated underwriting system in order to obtain an "approval". Once the automated approval is obtained the underwriters turn into automotons and do what the automated certificate says to do.
The originator stated that he had 51 transactions from a home builder and 30 of those wouldn't qualify until they were re-rigged to go into the "paperless" system. Tough for any decent loan officer to play by the rules when they are competiting with corporations with such clear and unfair advantages.
MORE OF THE SAME!!
