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Tagged: Economy, EXTENUATING CIRCUMSTANCES, fha, Friday Mortgage Minutes, Great Depression, Housing Market Crash, LATE PAYMENTS, Late Payments in Past 12 Month, MANUAL UNDERWRITING, non-qm-loans
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Late Payments in The Past 12 Months
Posted by Gustan on July 19, 2023 at 4:11 pmLately, we have seen many late payments in the past 12 months from mortgage loan applicants. I just got news from Alex Carlucci that he got clear to close on a manual underwritten FHA loan for a borrower with many late payments due to extenuating circumstances. Due to extenuating circumstances, Alex Carlucci got approved with tons of late payments in the past 12 months via manual underwriting.
Gustan replied 9 months, 3 weeks ago 2 Members · 8 Replies -
8 Replies
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More and more mortgage loan applicants have late payments in the past 12 months than ever. I have never seen so many late payments in the past 12 months of borrowers in my entire mortgage career than now. Is it inflation? Is it high rates? Is it skyrocketing housing prices? Or is it that we are going to have another Great Reset like the Recession of 2008. It was more like the Great Depression of 2008 than the Great Recession of 2008. I can bet anything we are going to have a collapse of mortgage rates. Housing prices need to correct about 30%. Home prices are overly inflated.
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@gustan-cho I think you are on the right track with a housing price reset. With the FED increase of another 25 BPS yesterday to attempt to slow inflation it is more important than ever for borrowers to make sure they are doing everything they can to not get that 30-day late on their credit report. Especially with FHA. I just had to tell a borrower we could not move forward due to several late payments that were recently posted on their credit report. A manual underwrite may work in specific situations, but getting the word out to our borrowers to make sure they are not missing critical payments that report to the credit bureaus is crucial. This is a topic I will discuss in my blog post and FMM Friday Mortgage Minutes this Friday.
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Watch and see. Rates are going to tank and when they do, it’s gonna get slammed hard.
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Dustin, I can’t believe these rates. Might as well go non-QM loan.
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Dustin, do you know of any wholesale lenders that will do 120 days of late payments in the past 12 months?
Full doc non-QM wholesale lender.
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