Thanks to Dodd-Frank regulation, banks now don't offer "semi doc loans". Basically, the pendulum swung back to tougher underwriting standards. Before Dodd-Frank

Thanks to Dodd-Frank regulation, banks now don't offer "semi doc loans". Basically, the pendulum swung back to tougher underwriting standards. Before Dodd-Frank, banks and underwrites had huge discretion. So, that discretion was abused. Now it is almost tough for self-employed, small business owners, to get mortgage through normal channels. When one doesn't get mortgage through normal channels, one goes to a FI(financial institution) that keeps these mortgages on their books. Such FIs charge extra interest rates, demand more downpayment like 30%, etc.