As Chris discussed last Friday, rules in lending change almost daily. Last week Ben Bernanke outlined a new set of lending rules that are sure to have an impact on the San Mateo County real estate market.
The biggest change announced was that lenders would be restricted from making loans without proof of a borrower’s income. These loans commonly referred as “no doc” loans – sarcastically known as ‘liar’s loans” – and are common among the self-employed who often cannot substantiate their income. This could have a chilling effect on the housing market as it may eliminate millions of potential self-employed home buyers whose only possibility of obtaining a home loan was utilizing the “no doc” program.
What do you think about the new restrictions? Fair and necessary or just another case of punishing the masses for the misbehavior of a few?
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Raymond Stoklosa, Broker/Co-Owner
Chela Stoklosa, Realtor/Co-Owner
