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August 17, 2007



640 may be a bit high for a "no stated income" cutoff point. For example, some very successful real estate investors make most of their money by borrowing against equity (showing net losses on tax returns), and use too much credit for their scores to be that high, in spite of spotless payment records and a large "war chest" of available funds.

I think making the loans available, but modifying the rates to cover the risks is a better option, especially if someone can provide bank statement proof they have enough money coming in.

It is certainly true that a lot of blatantly ridiculous loans have been made, and should not continue to be made... but let's not toss the baby with the bath water right yet.

Will business credit lines become the new mortgages for professional investors?

Dick Lepre


I am hardly suggesting that my numbers are the result of some finely tuned process and the economic equivalent of Maxwell's Equations. I am suggesting something to get this parked car moving again.

I am deliberatley erring on the side of caution because, frankly, I do not think that anything else will work at present.

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