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WSJ: New Appetite for Mortgage Bonds That Sidestep Fannie and Freddie
"Lenders also have restarted making loans that don’t conform to the standards Fannie and Freddie require. Some use alternative documentation, such as bank statements instead of pay stubs, to verify borrowers’ income."
History may not repeat, but it sure as s--t rhymes...
It will be interesting to see if the Fed takes notice this time around. My faith in their information gathering capabilities dove in 2007 when they continued to be unconcerned about the housing bubble after I observed on the ground in Florida how insane the mortgage market had become. ( Fed: Mortgage Defaults Won't Hurt Economy )
I was very surprised that the bubble lasted so long after that.