Mortgage Lenders Attempt to Reduce Risk Level
Mortgage lenders, on fear of narrowing margins of error and a need to reduce their potential risk, are proceeding more cautiously when it comes to approving “slam dunk” loans. Slam-dunk loans are those loans requiring a minimum of underwriting and collateral review.
The result of increased lender scrutiny is that mortgage risk has declined by 34.8% during the past year. More scrutiny can be expected as federal regulators have warned lenders to be more careful, especially when it comes to loans in the so-called sub-prime category
According to HomeSmartReports.com, slam-dunk mortgage applications account for a whopping 66.5% of nationwide volume. While it varies from state to state, these types of loans make up 44.1% of all loans in Colorado, 84.3% in Massachusetts, and over 76.9% in Nevada.
For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513
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