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Reply #6: If they're relaxing the underwriting criteria [View All]

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dipsydoodle Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-07-06 10:36 AM
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6. If they're relaxing the underwriting criteria
then chances are they've got a rising debt problem and the only only way of masking that from the primary fundors is to maintain the momentum of sales.

Doing that is like running with a brick tied to your neck with a long piece of elastic. It's fine while you keep running. Eventually they'll have to stop and then the lenders will pay the penalty.

The tragedy is that under those circumstances subsequent underwriting criteria , following the burst of the bubble, will become ultra tough.
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