It was not good.

It also suggests broader implications WRT why this would need to be done? Specifically it causes me (at least) to wonder just how much average credit scores are dropping as of late? And just how bad is the loan market currently, such that there's a need to increase exposure in this way? I.E. Presumably this would be done to "drum up more business" (though I concede to having little expertise on this arcane subject), so why is "business" so slow, such that this move is needed?

Everyone I know that got in trouble took equity out in their house not understanding what that really meant.

I see how they all do this...

Want to know what I did to fix it?

I stopped doing the things that got me the low credit score to begin with.

Now I realize that shit happens, and people miss or are late on payments. I get that. That's what happened to me. But getting out of the hole was something that I did too.

I went from the mid 500's to over 800 and have kept the 800 scores for almost ten years now. I bought my first home in my entire life 4 years ago this summer when I was 62. And as luck and good timing would have it, I got my loan and my interest rate on my mortgage at the absolute bottom of the market.

It sucks being poor. I know, as I've been there. And I'm still just a truck driver so I am by no means rich, but bad credit is not something that absolutely has to stick with you for the rest of your life.

People can fix it, it just takes time and discipline.

Fannie Mae and Freddie Mac are government chartered corporations. They shouldn't lower standards just because they can.

There are better ways to fix the housing shortage and the standard of living of Americans.

You mean like, becoming ill? #1 reason for bankruptcy in this country.

We escaped bankruptcy by the thinnest of margins. At one point our home was days from foreclosure.

That's when I quit caring about credit ratings.

My wife recovered from the potentially deadly illness after more than a year of adverse side effects and misery from her treatments, fights with her insurance company, and a COBRA plan timing out. We haven't taken out any loans or used credit cards since.

Recently my wife bought a used car with cash and the unscrupulous dealer did an unnecessary credit check, probably hoping to upsell her to a new car, even though my wife knew exactly which car she wanted and had cash to pay for it. The authorization for a credit check was probably in the fine print of something my wife signed. A few days later we got a letter from a finance company saying they couldn't authorize an auto loan because we had no recent credit history.

Oh well.

When it comes to finances, I probably learned the wrong lesson from all this.

No, folks not gonna be able to fix this!

because the banks gave them out to those who could not afford to repay the loans.

History does repeat itself, specifically the Sub-Prime Mortgage Crisis, 2007-2010.

https://www.google.com/search?
q=What+year+was+the+subprime+mortgage%3F&sca_esv=77dc914585b7f4b2&source=hp&ei=-YQTacDuOP-_kPIPn7vskQk&iflsig=AOw8s4IAAAAAaROTCdyDT5akFrwz94mQKbWqeBSuiFds&oq=&gs_lp=Egdnd3Mtd2l6IgBIAFAAWABwAHgAkAEAmAEAoAEAqgEAuAESyAEA-AEGmAIAoAIAmAMAkg

Sad, but true. I worked in real estate for many decades. People who barely qualify for a loan typically have a hard time making the payments and many wind up in foreclosure. I've seen homebuilders who have programs that get people qualified one way or another. Lots of back slapping and promises of everything.

Then the borrower gets behind on payments, and the mortgage company (which is usually an affiliate of the builder) swoops in and forecloses. Most people aren't able to sell a "used" home in a subdivision where a builder is still active because why buy a "used" home when you can get a new one with a warranty and better financing terms? Plus, many borrowers face foreclosure before enough time elapses for them to have gained any equity on the home, and the mortgage may be more than the value of the home.

The borrower has lost their down payment and whatever they've paid prior to the foreclosure, and the home goes on the market again. Typically an investor buys a block of them.

Lather. Rinse. Repeat.

A Buyer with no money for a down payment would place a full-price (or even above full) offer on a house and then request a goodly amount, say $5K - $10K, back at Closing. That way they'd end up financing the full amount of the loan without needing immediate funds to make the down payment. It was a good bet that either their offer would be rejected by the bank or that the Buyer would struggle with payments and later default.

Predatory banks and lenders swoop in to hurt people with low credit scores when regulations change

But, you know, whatever

... unless you're going to trust them bro when it comes to credit worthiness.... again?

tia

... we've seen these bullshit subprime loan schemes before and it doesn't work out for poor people as a whole.

There's little to no reason to trust banks and corp tied gov again unless you know of a material change in borrower worthiness?

Thx in advance

What people need whose credit is blown because we changed bankruptcy law to make it impossible/harder to get a discharge of student/medical debt is to restore bankruptcy law so they can get a fresh start.

What families with two earners each working hard for 40 hrs. a week and who still can't afford a home is for labor law to be restored to its pre-Reagan form so that they can organize to demand higher wages.

What most of us also need is a restoration of income tax laws and bank and securities regulation to what they were before Reagan.

The 1% have used a thousand different ways to loot the rest of us, and Trump's proposals will actually make things worse for most of us, rather than fixing the causes that actually got us into this mess.

And eventually only corporations will own most of the property unless one inherits the property.

sound very smart. Seems like we’ve been through this disaster making deal before.

Just because someone isn't already steeped in debt, doesn't mean they should be disqualified.

... guys to not take advantage of poor people and also game bundling like they did last time.

Just reeks of same shit different day and with "trust me bro" stamped on top no matter what admin but this one being worse.

based on low/no interest ARMs that will reset in 2 or 4 years is well within my memory. I agree with what you're saying.

But if we're going down this road again, don't ask me to support a bail out when it craps out. We tried this before. People really need help getting homes they can afford and keep, but this isn't a suicide cult either and I'm not going to go for recycled gimmicks that cut our own throats.

50 year mortgages and 10 year car loans. All fixed! Life is affordable again. Sounds like Trump-think.

House than they need because a lend e r approved them for the amount. Then they are house poor, the first time something major happens they do not have the savings to cover it (a roof or HVAC system for instance). They put it on a card and then cannot pay the house payment and credit card. It is downward spiral.

Maintenance, taxes and insurance creep up on you.