The rest of the Headline from today’s DS News: “…as Banks Loosens Credit Standards.”
The article, quoting Capital Economics, an analytics firm, goes on to say that banks are reducing their Loan-to-Value ratios for borrowers. Gee, did I read about this causing a little problem a few years ago? A problem so global that it now stands to take down the entire economy of several sovereign nations?
I can certainly rank on about the factors that contributed to the last world-wide economic meltdown, and the one before that. What get’s me is that the people who create the policies, underwriting guidelines and programs must have inncreasing short memories.
I’m an old-time private money equity lender. I know that people can lie about their income and fudge their credit scores. However, they two things that are going to the lender are: title to the collateral and EQUITY.
