[Occupymendocino] Underwriting the Next Housing Crisis - NYTimes.com

[Mark Safron]

This is a reply from a retired W/F exec. in the city:

"This is very unfortunate.  
One of the things that happened during the housing boom is that banks essentially stopped using underwriters but instead needed only processors to follow a checklist.  I saw this clearly happen at Wells Fargo.  This not only eliminated judgment from the underwriting process, but it led banks to, over that period of time, increasingly replace their underwriters with folks who weren't either trained or qualified to make judgment calls.  I'm sure that banks, among other corporations, have been pressuring legislators not to raise underwriting standards because it would be expensive and restrictive for them.  
This is yet another successful manipulation of Congress but those who “own" it."

Begin forwarded message:

> From: Mark Safron <mzs at mcn.org>
> Subject: Underwriting the Next Housing Crisis - NYTimes.com
> Date: November 4, 2014 9:49:42 AM PST
> 
> (Oh no! Not again. M.S.) 
> 
> http://www.nytimes.com/2014/11/01/opinion/underwriting-the-next-housing-crisis.html?src=recg&mabReward=RI%3A11&module=Ribbon&version=context&region=Header&action=click&contentCollection=Recommended&pgtype=article
> 
> Underwriting the Next Housing Crisis
> 

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