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Mortgage Broker News | 07 Feb 2013, 12:00 AM Agree 0
Bankruptcy has become an all-too-easy for those unable to refinance, said one mortgage professional, calling on associations to offer a broker course in how to direct clients to other alternatives.
  • Paolo Di Petta | | 08 Feb 2013, 09:35 AM Agree 0
    This is a great read.

    I think there's a fundamental problem about how debt is reported on a credit bureau. As long as minimum payments are paid on time, the account is shown to be in good standing. As long as they can keep borrowing from Peter to pay Paul, their credit score can appear to be fairly high. Amount owing and age of the debt should have a heavier weight in that number than it already does.

    Also, I agree that this is going to be something we're going to have to become very familiar with. As debt to income continues past 165%, the days of rapid property appreciation are grinding to a halt, and the ability to refinance properties at extended amortizations ends, people aren't going to be able to stretch that debt-servicing dollar as much as they have.

    I wouldn't want to be an unsecured lender right now, that's for sure.
  • Robert | 09 Feb 2013, 07:10 AM Agree 0
    I think it's well past time the Gov cracked down on unsecured debt, and that all of us do our best to educate consumers about credit management.
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