patrick.net

Is that 3 months reserves? Or three months in escrow? If they couldn't meet the requirements. FHA is a great way to plunge a new homebuyer into neverending debt. Power, cable, phone, internet. Hey they may never get out of it.

Three months of verified payments. In other words, an application with disputes would be impossible to close for several months.

So reserves.

I think payments on a credit report as I read it. Reserves can be puffed up with a single payment.

You know some lenders usually affiliated with realtors have a better relationship with FHA than others. I have seen them overlook 20 90 day lates for the realtors that sell new houses that are hooked up to the lenders directly. They have been stacking and selling FHA mortgage backed securites for decades replacing the bad loans with even worse ones. FHA is near at the end of the line. Thats where the Fannie mae mortgage backed security fraud started. Investors hold tons of these bad pass throughs they fail to examine them. They consider them reliable when they are the worst grade of loan out there. Bordering on subprime.

So another words one lender or mortgage lender in every major city gets all the new business from almost all realtors. No one else gets any. They run the worst credit and approve it. These loans if they fail are replaced with the loans that all the other mortgage lenders that have tight restrictions have to follow. Its been going on for a long time. Its about keeping up production.