If 2014 was the year that saw the return of No Income, No Job, No Assets (NINJA), and Stated Income, Stated Assets (SISA, or "plug in random numbers") mortgage loan applications, then the current three recent ads shown below, courtesy of KGBinvestor, demonstrate just how further down the subprime rabbit hole we have fallen in 2015.
One can only imagine what happens in 2016.
- No seasoning is now pretty much standard for all prior bankruptcies
- Loans are issued up to 80% LTV, and in some cases up to 97% for conventional loans
- FICO scores of 500 only need 10% down; FICO scores of 580 (subprime) - only 3.5% down
- Tax returns aren't needed
- Got caught fabricating your tax returns (4506-T) - no problem there either.
In short: every little trick mortgage lenders had during the first subprime bubble is now back.
And here are three ads showing how subprime is not only back, it's as bad as it ever was.