this may be of particular interest to dancers, since most banks do not consider dancing earnings to be 'regular' income ...
(snip)"At this point the banking system is stopping and taking a look at the subprime lending problem. Many are tightening lending standards drastically.
One of smokey's employers, a retired teacher who makes $12,000 per year, as been buying and selling houses for twenty years or so. Since she has been rather successful in this endeavor she has never had a problem getting a loan to purchase property.
Not so anymore. Smokey got an email from her yesterday complaining that the bank told her he had to put 35% down on a casita she wants to buy and the interest rate was 8%.
They would not include the $45,000 profit she made on a sale last year in her income. They only allowed the $12K pension payments.
The banks are returning to responsible lending because the CDO/MBS market has frozen. No one is buying this crap."(snip)
This is the result of this past week's shakedown in the CDO market. Previously, banks and credit unions could 'afford' to write loans and mortgages to people with less than perfect creditworthiness because the banks and credit unions could buy CDO's which would act as 'insurance' should the loans and mortgages go belly-up. However, banks and credit unions now must face the fact that their 'insurance coverage' is only as good as the financial institution that writes the CDO !!!



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