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> Banks today are buying both mortgages that are eligible to be sold to Fannie and Freddie as well as ones that aren’t because they are too large or they are co
by SamuelAdams 7y ago
> Banks today are buying both mortgages that are eligible to be sold to Fannie and Freddie as well as ones that aren’t because they are too large or they are considered riskier—often because they use alternative documentation to approve the borrower.
I'm really curious what this "alternative documentation" is. This was part of the problem leading up to 2008: banks did not verify people's information. Some people received mortgages after putting their pet's name on the paperwork.
We might not be there yet, but it's a slippery slope.
- adeelk93 7y agoAlternative documentation tends to be for borrowers that don't have good verification of income (like tax returns or paystubs). Often self-employed borrowers, or borrowers with large amounts of assets but little income.