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In order to get borrowers into mortgages, Australian banks have been plugging cost of living...

In order to get borrowers into mortgages, Australian banks have been plugging cost of living assumptions well below the poverty level into their qualification models. It's not quite NINJA, but the practice would make New Century proud.
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Comments (5)
  • Tom Au, CFA
    , contributor
    Comments (6780) | Send Message
     
    The American experience has shown that mortgage bankers will "do what they have to do" in order to "get borrowers into mortgages."

     

    Whether or not it's in their long-term best interests.
    19 Apr 2011, 11:21 AM Reply Like
  • OptionManiac
    , contributor
    Comments (3362) | Send Message
     
    And they don't learn from recent history. I just saw a sign this weekend for a no money down mortgage.
    19 Apr 2011, 11:29 AM Reply Like
  • coloneldebugger
    , contributor
    Comments (907) | Send Message
     
    don't leave the homebuilders out of this circular reference error of stupid.
    19 Apr 2011, 11:46 AM Reply Like
  • OptionManiac
    , contributor
    Comments (3362) | Send Message
     
    Yeah, what's the deal with the big increase in housing starts?
    19 Apr 2011, 12:40 PM Reply Like
  • Angel Martin
    , contributor
    Comments (1334) | Send Message
     
    more short ideas when the china/commodity boom ends
    19 Apr 2011, 11:40 AM Reply Like
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