The American Banker's Association released their Q2 2011 consumer loan delinquency statistics. A delinquency is a loan payment that is 30 days or longer late. No surprise, people late on payments or defaulting increased for Q2 2011.
Are the banks going to investigate if you chewed gum and if so, deny you a loan for it next?
Recently, Mr. Berg arranged a refinancing for a borrower with a very high credit score and lots of home equity and debt payments totaling just 19% of pretax income. But Mr. Berg said the lender was worried about a credit report showing a $14 missed payment to a credit-card company in 2001. The lender insisted on proof the money had been paid, which Mr. Berg said was impossible to get.
"Who cares?" he said. "It's nine years ago, and it's $14." He appeased the lender by having the borrower write a $14 check, though no one knew where to send it.
Pete Ogilvie, a mortgage broker in Santa Cruz, Calif., hasn't found a bank that will refinance a $250,000 loan on a $1 million property for a borrower with more than $200,000 a year in income and a high credit score. Banks balked because the borrower, a technology executive, was out of work for nearly a year starting in 2008.
Diana Olick of CNBC believes no one is going to notice what she did. Well, CNBC now that you brought this to our attention, I think we will amplify it!
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