If you look on YouTube, you'll find all kinds of brokers offering no-doc loans... again.
Via Zero Hedge. Aren't you glad we broke up the big banks, reinstated the rule against banks owning insurance companies, tightened up on their banking practices, and threw the crooks in jail so they wouldn't dream of crashing the economy again?
First we got GM subprime interest-free car loans, then we got subprime ABS securitizations, then we got soaring student loan defaults and delinquencies, then we got the opportunity to sell and short student loan exposure, and now, finally, the credit bubble is complete as FastFunds Financial Corporation is proud to announce that it has acquired exclusive mortgage servicing rights for an "Innovative New Mortgage Product."
Why is it so innovative? Because it requires no credit verification, no credit history, no docs and needs no personal guarantees. In other words, it is the very worst of the worst lending practices we saw in 2006: the NINJA.
But there is a twist: "all that is required to qualify for a mortgage loan is qualifying for a life insurance policy, a down payment that usually amounts to 10% of the purchase price and verification that the borrower has the financial ability to pay the monthly payments.
"In other words: buy life insurance, get a subprime, no doc mortgage for free.Ye olde days are truly back.