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If they have too little income, then why are they able to pay higher rents?
I don’t know. That’s my question. I’m trying to understand the mechanism by which mortgage credit is being rationed. There doesn’t seem to be a shortage of other consumer debt, but again, I don’t know
a basket of impositions on lenders. Vague liabilities if their underwriting can be blamed for defaults in hindsight, costly underwriting mandates, limits on fees and spreads, etc.
Because there are so many facets, and the decisions are not transparent or public, it is tough to document the exact causation, but the decline in lending to affordable homes and low income/low FICO borrowers has been extreme.
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