We live in a very imperfect world, and it's normal to see borrowers with DTIs closer to 50% (or even higher for non-GSE loans).
Good afternoon! Was this newsletter forwarded to you?Sign up here.
Hello, LOs!
In a perfect world, prospective mortgage borrowers would have debt-to-income levels below 36%. But we live in an imperfect world, and it's normal to see borrowers with DTIs closer to 50% (or even higher for non-GSE loans).
Given the amount of problems caused by inflation and increases in property taxes, I'm wondering what you are seeing out there now in terms of DTIs from prospective borrowers. Are people stretching? And do you think it's a good measurement of credit risk? If not, what would be better?
Many originators are outsourcing to third-party providers the responsibility of conducting the risk and data analysis. If you're interested in partnering with a provider, here are five things to consider.
From streamlining origination to powering secondary market activity, we support the entire lifecycle of real estate finance. SitusAMC - powering opportunity everywhere. Elevate your business at SitusAMC.com
EmoticonEmoticon