[joesbucks]

Whatever happened to a lender saying........no?

[Iconoclast2]

What happened is that the real villian of this piece, naturally never identified, the Federal government, created a complex web of institutions to eliminate the risk to the banks.

[Always Right]

Whatever happened to a lender saying........no?

Some of these bigger builders act as the sole mortgage broker for the whole community. They know how to work the numbers so they can sell the mortgage and then it is out of their hair. Also being the mortgage brokers allows them to dictate who does the appraisal, so they can get the homes with their high-marked up options to appraise out.

[mj1234]

The lender only needs certain guidlines fullfilled-
and they are GUARANTEED payment:
1:typically home buyer needs 5%-10% down
2:The home buyer MUST have mortgage insurance!
this protects the lending institution.
The banks are not in buisness to lose money on a loan-
They are not going to send you to a nice loan officer
(from it's a Wonderful Life)- if you fail to make payments
they have another waiting.