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The statement: “Fannie and Freddie ignore much of what borrowers owe, allowing them to qualify for huge mortgages.” I honestly don’t see anything wrong in that
by Temporary_31337 3y ago
The statement: “Fannie and Freddie ignore much of what borrowers owe, allowing them to qualify for huge mortgages.” I honestly don’t see anything wrong in that per se. If you have a large and sufficient source of income to service both debts why wouldn’t they?
- salil999 3y agoI can see that point but I think in general the average American will not have a large and sufficient source of income. The article mentions how these firms are slowly raising the debt-to-income ratio to >50%. That's not because they're being nice - it's because they can trap more people into taking out enormous loans.