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A comment on No Pay Stub? No Problem. Unconventional Mortgages Make a Comeback. Parent comment

Re:No Pay Stub? No Problem. Unconventional Mortgages Make a ... by brianwawok on Wednesday January 23, 2019 @11:08AM (#18979417)
It's an asset secured loan. If you have a 600k house, and the bank is willing to give you a 550k loan on that house - because it's backed by the asset - let it.

Just don't let the bank then resell this loan as a prime AAA loan to others, so if it bombs someone else gets the shaft.

It's just like organic food. I don't think it should be illegal to sell "conventional" eggs. I only think it should be illegal to sell a tray of organic eggs - where 1-2 of the eggs are "conventional" and hope no one notices. (Especially in a case where the farmer has an inside relation with the FDA inspector that is checking for the organic nature of eggs)

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Re:No Pay Stub? No Problem. Unconventional Mortgages Make a ... by toomuchtodo on Wednesday January 23, 2019 @11:24AM (#18979607)
I think that's where the real confusion comes from. People think the relationship between the loan originator and the borrower is where the questionable practices take place, when it's really between investors and the loan originator. Similar to how Chinese companies do reverse mergers on US stock markets to bilk investors out of their dollars.
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