“Josh Tullis, who in his eight years as a senior loan officer rarely felt compelled to reject a first-time home buyer’s mortgage application, is sending people away empty- handed in 2007.” “Tullis’s latest clients are a married couple that banks ought to love. Between them they make $70,000 a year and they’ve been renting the same apartment for three years with zero late payments, he said.”The story doesn't say if the couple had a down payment ready, if so then asking for an additional two months of payments essentially in escrow seems excessive to me...
“Lenders won’t approve them because they don’t have enough money in the bank, said Tullis, Virginia sales director at A. Anderson Scott Mortgage Group in Falls Church. With mortgage companies cracking down due to rising subprime defaults, Tullis needs them to sock away two months of payments for the $500,000 townhouse in Fairfax.”
“‘Six months ago, these folks might have qualified, a year ago, definitely,’ Tullis said. ‘It’s a lot, lot harder than it used to be for first-time home buyers.’”
Wednesday, June 13, 2007