Re:Finance is Not the Economy
by dageshi on Monday September 26, 2016 @07:05AM
(#12580802)
Perhaps having a rule where the originator must keep some meaningful percentage of the loan on its books would help, say 30%? Then the originator always has skin in the game.
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Or simply require verification of income. In Canada if you want a mortgage loan you are required to show proof of income, ie. a gov tax return showing your income. My understanding is that in the US verification of income was often waived making it possible to grant bad loans.