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  • Comment Detail

  • Date: 06/24/23
    First Name: K
    Last Name: Dunn
    Email: KDUNN1739@SBCGLOBAL.NET
    Organization Type: other
    Organization: Concerned

  • Comment

    It is a fact that the greatest indicator of mortgage default is the FICO score. This was most recently broadly evidenced during the mortgage crisis of 2008-2009. As the mortgage refinance business slowed, private mortgage buyers began reducing the qualification requirements of loans they purchased. This eventually forced the GSEs to follow suite. This eventually led to securities backed by virtually worthless mortgages. I would have thought that the lesson would have been learned. Apparently that is not the case. To continue to lend to sub-FICO borrowers is to welcome a repeat of the 2008-2009 crisis and another taxpayer bailout. To offer pricing initiatives that encourages such lending is not only irresponsible, it is outright unsafe and unsound. Any financial institution engaging in such action would be promptly criticized and ordered to cease and desist by its regulators. Higher FICO borrowers should not be subsidizing sub-FICO borrowers and such pricing framework should be eliminated immediately. Further, the GSEs should not be purchasing sub-FICO loans period.