Potential Home Buyers Getting Kicked To The Curb!
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As an agent my problem has been finding loan officers who will actually work. I have had more issues with getting them to call my leads back, return my calls, keep me updated then when the market was booming. I really do not understand that. I have gone through 3 in 6 months and these are loan officers that I have worked with for 10 years. What’s going on?
I RETURN ALL CALLS WITHIN THE HOUR-24/7. WE UNDERWRITE IN HOUSE AND IF IT IS APPROVABLE I CLOSE IT.
As far as I am concerned, it’s the underwriter who’s the problem. They don’t look carefully at the package until shortly before close of escrow and then, if the don’t like the appraisal, they kill, or greatly retard, the deal. This sends all parties to the transaction into a tailspin. I do not find any problem moving from Pre-qualification to Pre-closing. It’s that next step that is hurting my deals.
Get Pre-Qualified, not Pre-Approved.
You guys are so on target with this one. There are many well qualified buyers out there who are being kicked to the curb because some underwriter is on a power trip. They have the “power” so they play hardball on situations where they should just sign off and move on. thinks they know more than the appraiser. The key is finding good loan officers who will work hard for their clients and look for solutions to potential issues and get them resolved before the loan goes to underwriting. There are too many loan officers out there who will promise a buyer the moon only to have them shot down because they really couldn’t qualify but the loan officer wanted to “try”. Why try if it isn’t going to work? In the end everyone gets hurt.
i am a successful lender. this is innaccurate. underwriters usually do not have the ability to arbitrarily deny a loan. they have no right to question appraised value short of requiring a desk review. they cannot and do not deny loans because they “dont like the appraisal” or “don’t like the deal”. the lender is making an excuse for not properly vetting the clients. if you are having these recurring issues fina another lender-like me.
The news that sales are falling apart at “twice the rate” as last year is really shocking….but I suggest flushing this out a bit more before anyone is tempted to kick the stool out from under him/herself.
For starters, in Bend, where I’m located, the number of potential buyers is up from a year ago; more people are out looking. Our inventory has held at about the same level but the percentage of short sale listings has increased. And, despite dealing with short sale headaches for most of the last 4 or 5 years, many listing agents still do not council their seller clients to get earnest money up front, prior to lien holder approval. What this means is that a single buyer can write offers on multiple short sale listings, offering earnest money in the form of promissory notes redeemable only after lien holder approval, with the intention of buying only one property. (I personally had a buyer’s agent tell me that the buyer wouldn’t be willing to put earnest money in escrow because the offer they’d written on my client’s property was one of six they had outstanding!). The strategy these buyers use is that they’ll wait to get an acceptable approval and then cancel all of the other offers they have outstanding.
Also, with more potential buyers but a relatively stable inventory level of distressed property listings (though with short sales now outnumbering foreclosures), we’re seeing a big uptick in multiple offer situations. Thus many offers ultimately go nowhere (since only one offer will ultimately lead to a sale). Are these offers counted among those “sales” NAR reports as falling apart?
I miss Angelo and the other good ol boys. They could get stuff done. Buy a Congressperson here, a Senator there, and make donations to the right campaign. Where are the people of ACTION? That’s what we are doing wrong, we need to update the pricing on Congress, get those rate sheets out, and then forward the rebates to election PACs. All we lack is creativity.
OccupyCongress.con….vict
How much time did Angelo spend in the joint? I don’t recall but it’s all good.
Does anyone have a link to the NAR info about fallout sales? I’ve been looking and cannot find the source info.
Frank & Brian,
Sometimes you are so on point with the industry “issues” that it borders on psychic savant! How can we have the right people in Washington “Get It”? We must get back to common sense underwriting guidelines loose the ridiculous individual lender overlays (they have had to purchase back every loan sold to secondary because the borrower didn’t check the box that he wouldn’t use his property for chicken fighting and breading pit bulls). We have got to create some sort of programs to allow our self-employed borrowers to refinance into better positions allowing them to free up more spending power and capital for their personal/professional growth too! I’m a small business owner who has had to go out of business. I had 15 employees state wide at one time. Isn’t there some sort of saying that small business is the backbone of the US? Oh, and just so you know.. I’m conflicted and am having a difficult time deciding should I pore myself another Jamison and Ginger or should I finally check myself into Betty Ford {Hiccup}….
Joe,
I actually didn’t know you could report these knuckleheads, I am on it right now. Is there anyway to report these idiot lenders who won’t look at a poor appraisal so it can be corrected? or is that asking to much of an industry who is so corrupt, they dont seem to have to answer to anyone. I swear there is a mnadate out there that says absolutely no way can you raise a value or you will be dropped!!!!!
Mark, not yet, but the States are now intending in licensing amcs which means that there will be rules they have to abide by and then there will be a method of complaint. The cost of licensing will probably be parlayed on to the appraisers in less fees as the amcs certainly will not be paying their own license fee, so once again the appraisers get stiffed.
Last time I saw this much ‘constipation’ in the lending field was in the late 70′s and early 80′s during the savings and loan crises. There wasn’t any money to fund loans, so the ‘lending institututions’ came up with execuses as they didn’t want the world to know, “Closed-no money available”. It was an exciting time which was solved by ’19% interest rates!
My prediction. Money will flow, when rates become acceptable for ‘investors-countries-moneypeople’ to make a secure return on their ‘cash.’ And 4% for 30 years is not happening.
What about sellers messing up transactions? Bank Owned Property Asset Managers are a nightmare. I just had a transaction that the ‘closer’ on Fannie Mae’s behalf tried to deprive the buyer of the contractually agreed upon Seller Credit for all closing costs. It was so ridiculous that I had to call Fannie Mae directly and go over her head to have them make her comply with the contract. Up to the end, she was arguing that prepaid items aren’t closing costs (even though the contract spelled out cc’s and prepaids). It made me wonder how these people get paid? Is it possible that the bank (Fannie or whoever) requires a bottom line and the closer gets to keep anything above that amount, so they might be motivated to screw the buyer any possible way? If any one out there knows the answer, please post it. The closer is with Old Republic Title, who has POA for Fannie REO sales in the subject area. To be fair, once I contacted Fannie Mae, they did the right thing, but I should not have to do that.
Transparency is not the rule in the banking business. Behind the door deals are all over the place and the consumer does not know about them, and those deals costs the consumer dearly.
But, if the lending business was transparent, we would be working at Walmart because we would truely know how screwed up things really are. . . . . no, I mean we TRUELY would know, and I don’t think I have the intestinal fortitude to really know how bad bad bad it is.
Maybe it’s come to this. Only do business with lenders that are willing to process credit in advance, including underwriting approval. And stop doing business with them the first time they renig. Then make contracts strickly contingent on apprisal. Make it the seller’ responability, especially in short sales and REO to make this happen. Perhaps they would be more careful with pricing. With all the other things that is wrong with the industry, We simply can not afford a fifty percent fallout.
Get this one. My wife, a realtor, just had a sale blow up on an engineer with a 760 creditor and paying 20% down. He had preapproval from three lenders from a source that shall remain nameless. After difficult negoiation, a contract was signed and went to one of these bank lenders. His wife had absolutly no income was included as co-borrower. Turns out that mysteriously she had her credit hacked and the perp tried to borrow a lot of money. Of course, when the underwriter saw this, end of story. Where was the LO’s mind? Where do the banks get these people?
Ahmen!! This is the truest show yet! I don’t even tell my clients they are approved anymore, even when I have full loan approval and am removing the loan contingency. I’ve had A paper after A paper denied at the last second over unheard of things by the underwriter. I’ve had an underwriter tell me “they are going with their gut and denying the loan”!!!!! Never mind fico is over 720, never mind debt to income is well under 40%. They had a feeling!!!! Between the short sale fraud, the REO fraud and the underwriters, R.E. has no chance at picking up.
I’ve read all the comments and have yet to hear anyone say anything about the buyers and how wishy washy many have become. I’ve had a HUGE increase in deals falling apart but not many of them due to the loan being denied. It seems that some buyers will walk immediately the first time something doesn’t go exactly their way. The latest deal I worked on but never got paid for was with a buyer who is a licensed agent from a different state. She was buying a short sale. She waited until the very last minute to apply for her mortgage. The seller had approval of the short sale and we were now waiting on the buyer to get financing. when I called the lender to see when she expected to have loan commitment, she told me the delay was because of the buyer. The lender needed some documents from the condo association, which this particular association charged a fee for. these docs were in addition to the typical docs the seller must provide and were clearly a buyer cost. The loan officer told me she could have had the loan done weeks ago but the buyer refused to pay the fee. She bascially whined about it until someone else, to get the deal closed, agreed to pay it. Shortly after that, the buyer informed me that she was cancelling the deal but not to worry because she had some other units she wanted me to show her. Needless to say, I didn’t waste one more minute of my time with her. Doesn’t look like she’ll be getting her earnest money back any time soon. It seems like more and more people are totally okay having someone run around like an idiot for months and then just walking. What the hell is wrong with people anymore?
Amen!
amen
As a high producting real estate agent in Portland, OR sale fails are definately up however not sure that is due to the lenders not doing a good job qualifing the buyer or the buyers inability to buy. We are seeing alot more low appraisals on regular sales, and interesting enough, high appraisals on short sales, which impacts the ability to close the sale. Another BIG factor is when a buyer writes an offer on a short sale, and the process takes 60 or 90 days, because prices are dropping and so much inventory is coming on the market during that period, and in most cases, the buyer cancels their offer because the same house next door came on the market for $30K less. I am seeing this as a much bigger factor to sale fails than the buyer not qualifing or the lender not doing a good job qualifing.
Remember, there is opportunity in every market … just get out there and find and/or create it!!
Make it a Great Day!!
Spring Cutsforth
I have been out of the loop for about a month, who’s that new skinny guy?
If everyone, would realize the true enemy within this purposely failed system, you would then quit bickering among your self’s, and fight the fight before its to late. RealtorsOccupyWallStreet.com
Hi Guys,
I am a real estate Broker in Phoenix. The majority of the contracts that fall out are either reltaed to the appraisal not coming in a sles price or more likely, it’s a short sale. Short sales are NOT getting better. It’s almost impossible to get one approved if there is MI. They are asking for seller “contribution” at an alarming rate or the investor will deny the deal. I can see requesting a contribution if it is a strategic default but not if there is a true and genuine hardship. These investors are stepping over dollars in some cases to pick up pennies. (not all cases granted)
FYI…
Most people don’t know this but Phoenix is in a sellers market! We have a shortage of inventory at the moment. Its a great time to list your property and sell it!!!!
RealtorsOccupyWallStreet.com Realtors Occupy Wall Street
Zuccotti Park owned by Brookfield Office Properties Inc. is one of over 500 public spaces in NYC created in exchange for additional floor space http://www.nyc.gov/html/dcp/html/priv/priv.shtml )
NYC office of Brookfield Office Properties Inc. is located on the 11th floor of the Three World Financial Center in Lower Manhattan. HQ is in Toronto.
Guys, you let this mess in yet I do perfectly respectable posts and they don’t make it? Done with ya.
Could the increase in “fall-out” be due to the fact that we have so many Short Sales and that buyers have to make offers on 4 or 5 to get one to stick?
I close a significantly higher than average number of buyer transactions and I have not noticed a significant increase in failed sales from the buyer’s loan standpoint.
But once a buyer has decided to buy, waiting for Short Sale approval is torture. Most buyers continue shopping.
That’s why I have a shot of moonshine every night!!
I’ve been a mortgage broker for 25 years, so I have some authority here….people ask why I drink then they get to know me and my profession and they ask why I don’t drink more!
“If you drink less you’ll be more productive…..” Now this is a tip that could be useful to me. I’ll have to give that one some consideration.
Hey Brian & Frank, I’m a Realtor in South Bay, and I recently had a deal fall apart, where my buyers were totally pre-approved with a local (live in person) Lender, it was a short sale, we got bank approval, went into escrow, and this time the Broker killed the deal, due to the lenders requirement, of no “arms length transaction”. The Broker owned the Escrow company, and would not move it to keep a deal in play… We had to cancel escrow, I was so worried that the Buyers were going to leave… they did feel tho’ that I could have done more, I’m not sure what, as I had my Broker call.. Sometimes it’s for the better, which I think this will be, but I thought I’d let you know, that some of the deals are NOT just LENDERS, it’s the industry in a whole. I’m afraid some are just out for themselves, and not the consumer, nor the process. ALso, there has become repeated IRS issues, where the IRS has stopped several deals that loan docs were ready to go, and the IRS delayed everything. Do you know anything about this, and what can we do to remedy up front! Have a great day!!!
Lauren
Lauren,
I must have missed something in this transaction. While we both know that agents or brokers influence who handles title or escrow but it is the buyer or in certain counties such as Palm Beach the seller selects and pays those fees. Therefore it would be a violation of law for ANY broker to dictate that decision.
If LO’s would do their job up front, then the fall out would be greatly reduced. If the issue is value, then that falls on the shoulders of the RE agents because they look at the same comps that the appraisers do. If it is underwriters discrestion, then you are working with the wrong lenders. Granted the rules have changed, but not that much. One has to remember to document, document, document each file. It appears that the better LO’s have run to the smaller corespondent lenders because of better comp plans than the big box lenders who have devestated the LO comp. BUT RE agents should not write an offer without a pre approval, and a pre approval is defined as an LO actually collecting W2′s, paystubs, bank statements, child support documentation, if needed BK documentation, if needed, tax returns, if needed. This is not brain surgery, Granted the jumbo loans and self employed are hard to get approved, but that is the way the pendulim has swung. BUT, if the RE agent has the customer get pre approved up front, and the LO does their job correctly up front, the fall out will reduce greatly.
Rick,
Agree, agree, agree. Except when the LO sends over a pre-approval letter and come to find out they haven’t collected any paperwork from the buyer. CYA, get the buyer to send in the docs whether the LO asked for them or not and wait for the results.
Good morning Brian and Frank,
It’s about time you addressed this issue. I am constantly having to go over with my buyer’s the documents they need to send to their LO for an actual “Approval” letter prior to showing them homes. I get referals from an outfit (out of town) for VA buyer’s. When I meet with the VA buyer’s and ask if they’ve sent in the required documents…W2, paystubs, tax returns etc. to their lender, the answer is no. So… I sit them down and give them a list of paperwork to send to the LO for approval. This is becoming part of my business plan working with buyer’s before I even send them any listings or show any homes. You are absolutely right, the buyer falls in love with THEIR NEW HOME and gets the rug pulled out from underneath them. Another thing that comes up is the LO tells the buyer they don’t have to come up with any out of pocket money to close a VA loan. NOT TRUE, what about the E.M.? Again, LO’s misleading the buyer which I have to fix and explain to them no contract without consideration especially some of the REO’s out there. E.M. can be anywhere from $500-$1000 depending on the list price and or contract price. Let’s get it together people.
So did you guys film two days worth of videos at one go or did you both sleep in the office and show up wearing the same gear as you were yesterday?
Another great show guys – your point about the emotional involvement of our buyers and the fallout of a blown transaction is poignant and appreciated. Unfortunately, the false belief that what we do can be accomplished by filling out an online form (Quicken, Zillow, XYZ online lender) will only perpetuate that kind of tragedy.
BUT, the comment must be made: what’s with wearing the same clothes you had on yesterday’s show? The only explanations I can think of are A) you taped two shows in the same day consecutively, B) you worked a solid 24 hours and never took the time to bathe and change, or C) money is a little tight and you’re trying to save any way you can. If C is the case, let me know and I’d be happy to send you a couple of Touchstone Funding shirts for your next show.
Another reason home buyers are getting kicked. Underwriters and reviewers are constantly asking for revisions on my appraisals that would effectively lower the values. Lately it is as if that is their main motivation.
Don’t make the changes. These morons try to tell you the value based on what they find on Zillo.
Guys, Don’t forget all the quality borrowers out there that paid uneccessary Fannie Mae and Freddie Mac costly “risk-based-pricing” adjustments for credit scores and/or LTV’s lower than the levels both organizations created. These executives made their millions in bonuses off the “backs” of good qaulity, tax paying, mortgage needing consumers!
Certainly there are deals which fall through due to the LO not knowing and/or researching guidelines. There are also deals falling through due to appraisals. We are seeing appraisers “playing games” by producing appraisals for $500 less than the contract. In most cases, this is ridiculous.
Dave:
I hope you are saying this is a nuisance and not a deal breaker.
Appraisers have been doing this for years either to cover their backs or just try to justify their independence.
I don’t recall that I have seen any deal fall apart over $500.
I am sure that you are using the word “appraiser” in the very loose sense of the word as NO ONE is that good to appraise to $500. NO ONE..I have been an appraiser for a long time and that certification of accuracy is just not possible. The appraisal process gives an educated guesstimation not an empirical value, although the URAR demands an exact figure, anyone who has been taught to appraise correctly knows this and is fully aware that there is a range of value and the home’s value is somewhere in that range. That estimator is very full of himself/herself if they consider they are accurate to that degree of precision and has a very skewed opinion of their own importance, particularly in the mortgage loan process. NOW what needs to be done by the borrower and/or the broker is permit the State to consider whether the appraisal has been done correctly. So take the time and express your concerns to the licensing State..If the estimator has completed the report under the guidelines then S/He has nothing to be concerned over. It just screws it up for the rest of us that do good work as it helps to dilute the need for appraisers by negative reactions to bad estimation. What a pompous ass!…..
man let’s really look at this appraisal process and the underwriters discretion. We will NEVER have price appreciation if these Lenders don’t figure out how to handle these jokes called AMC’s. I am in the worst nightmare of a deal that is going to probably blow up because the lender First Mortgage corp. out of southern California hired an appraiser that appraised a property 25% below the contract price. The appraiser missed 3 comps that would have brought it in at value or close enough to get the deal done, which by the way I gave the appraiser at the time of inspection. When the appraisal came in at the low value I sent in a form to have it reconsidered, it was denied for one because they said I was not an appraiser and my opinion didn’t count. I have been a Realtor for going on 9 years and have listed hundreds of homes and had them sell. Now all of a sudden I don’t know how? I then took it to upper management and this is a quote from upper mangement ” yes it looks like this appraiser was looking to low ball this appraisal” which i replied ” well then can we get it redone?” his response, no “this is justifiable, he was able to comp it out at the lower value” I was flabbergasted, he completely ignored the property 4 doors down from the subject that was a perfect comp. So, short story made long, this appraiser lowballed this appraisal, the person that bought just a few months prior just had there value cut by 25%. the lender would not allow for a second opinion, being it was an FHA deal, the appraisal sicks to the property for 6 months. How do we ever get appreciation in a market if underwriters will not allow a property to sell for more than another? it is impossible. Also, how is it in any ones best interest that these AMC’s work for the banks that are lending the money?
“palying games”?, watch where you point you finger. As an appraiser, half the time, I have to fight against the UW or prove my (yes, sometimes higher) value against an AVM, which they believe is more accurate. Most appraisers must work twice as hard to support the value we come in at to what, show our independence? Really. One word of advice, try not to let contract price be $500 over the highest sales price ever in that neighborhood. The UW is going to ask for a sale supporting that price, if it never has happened, we can not make up a comp. Oh, and as a realtor too, I never, ever lost a deal for $500 unless the buyer really should not be buying a home, if $500 kills the deal, you and the buyer/borrower have much bigger problems ahead.
I don’t believe you. Why on earth would an appraiser value a property for $500 less than contract? Thats idiotic! On the other hand, I have yet to have a realtor or LO provide any relevant, market data that should have been used when a value does come in low. Only poorly priced listings which allow for a commision.
Of course lenders want conservative appraisals, but the problem with the current system is that appraisers are not accountable to anyone so the work is becoming shoddy, unreliable, and is killing deals, with the larger effect of hurting housing as a whole. Who has time to make a case to the State? The appraiser and the AMC, or Bank that owns it, are the only ones that get paid. Something else Barney Frank missed – if appraisers could inflate the housing market, they can certainly deflate it, and are! They are paid less to do more, and are on the defensive. They and don’t have to justify their low ‘opinion’ to anyone, certainly not to the lender, their ‘customer’. So why should they work hard to justify value?
Amen to the Above post. Frank and Brian, you really need to do another show on this and we will all rally behind you
Thank goodness you don’t know what you’re talking about, for a minute there I thought you did. Since when are appraisers not accountable to anyone? what about licensing, the borrower, the lender, the investor, particularly when they are suing the appraiser for work done 6,7 and sometimes 8 years ago on properties that are now embroiled in a foreclosure suit!!!!!!! and we are also liable for information in the report to absolutely ANYONE that reads it that takes umbrage at the details of the report…..ANYONE can report us for any reason at all, even if they didnt rely on the information in the report……. I dont see anyone else having the accountability that is loaded onto us…. and there is more coming down the pike directed specifically at the appraisal industry and make no mistake, your business is next in line……. How many times have YOU reported a bad appraisal to the State…not many I bet as you seem to be so busy you “dont have the time”(all it takes is a letter to the State with the appraisers name, the property appraised and the complaint …(10 mins tops) They are mandated to investigate EVERY complaint regardless of who sends it. The USPS delivers the letter so that is out of your hands and the State investigates and THEN REPORTS TO YOU WHAT THEY ARE DOING so that is out of your hands as well)…….but wait, you obviously didnt know….YOU ARE THE PROBLEM. By not reporting crap appraisers YOU are permitting the bad appraisals to be the norm. So stop pointing the finger at someone else, get off your ass and report some of these idiots to get their licenses sanctioned, maybe then the amcs and the banks will have to employ good appraisers, that know what they are doing, but cannot get work right now because the bad appraisers are ensconced with the amcs because no one else knows how bad they are ‘cos no one(YOU) has told them so, but you had better hurry up as pretty soon there wont be any good ones left.
Do you realize that lenders could increase an appraised value on their end by 10% plus or minus during the boom? Yes, a lot of that went on.
Appraisers didn’t cause the boom and are certainly not in the drivers seat of the bust. If appraisers had that much power,we could just eliminate them and everything would go back to normal.
As a high production RE broker in northern Colorado I am discovering quite a few buyers rejected by the big box lenders for fixable issues like modest collections, unpaid child support, and recoverable scores. I recently got just such a buyer on one of my own properties who had been turned down and when I hauled them to a LO who was willing to do a little work we were approved this time around in two weeks! They had attempted to buy a home on the same street this summer and were rejected by the big box their agent had sent them to….after an agonizing three months of delays!
Gary, you mentioned about 90% of the problem,which is better than what other less informed people think. Good job! Welcome to the new world.
I think that you hit the nail on the head. LO’s are not doing their homework. Many “Originators,” especially at the big box banks and online lenders, see their role as being just application takers. Files get pushed along to a processor to do the actual work of qualifying buyers. By that time, its too late, and unqualified buyers end up falling out. I can see this as a het another negative consequence of the LO comp rule. With limitations on comp, its all about loan volume. An LO is forced to push more files through his/her pipeline to maintain their income. Taking the time to truly qualify a buyer has fallen to the wayside as a result. Admittedly, the voluminous number of underwriting changes and investor overlays and the overall greater complexity of lending doesn’t help either. Keeping up with guidelines changes has become a full-time job that few of us can do and still find time to originate loans.
Yup, just throw it all against the wall to see what sticks. It’s all about volume to the originators at the big box banks.
I have been taking my buyers to NACA. It’s very simple, they are non profit, and they underwrite the loan. The documentation is not over the moon and the entire process is smoother.
I have had settlements delayed by more than a month with the local human being, and some fall through because the underwriter couldn’t gather enough documents even after a document fest and an approval.
NACA is great. Buyer takes a home ownership seminar of about 2 hours, I go with them, they meet with the NACA specialist and before you can say ‘I’ll take that in large bills, please’ you have a real approval and it’s done.
As long as underwriters are allowed “underwriter discretion” we will NEVER be totally confident of our pre-approvals! If I pull guideline for program and investor and my buyer qualifies and then some underwriter makes a judgement call, what am I supposed to say to that buyer then? It makes it impossible to do my job!
I refer buyers t NACA now, especially if they are first time. Look it up. It’s a legit non profit lender who gets their funds from *fancy this* the very major lenders who’s underwriters dick you around.
They lend to low to moderate incomes and people with challenged credit.
naca.com
unfortunately I wouldnt get paid if I referred buyers to other lenders so NACA wont help me
You are right but the real problem that has come from this is the pressure put on UW’ers to only approve “clean” loans. Imagine yourself in their shoes. Every file is potentially going to be re-underwritten by an investor, or worse, in the event of a foreclosure. Your reputation and job security is only as good as the last loan that you underwrote. This is all the result of the huge number of loan buybacks and the way investors look for any tiny excuse to push the loan back on the originating lender. We have created some sort of “ideal” loan profile and in the real world there is no such thing as a perfect loan or a perfect borrower.
I realize we all want more buyers to close transactions, but simply saying we need to get more buyers into homes is what got us into this mess in the first place. Congress mandated to increase home ownership so lending standards got ridiculously lax. Now standards are admittedly too stringent, but maybe some if not most of the deals falling apart are wishful thinkers seeing home prices fall below what they are renting for and want to buy, however that doesn’t make them any more qualified or responsible moving forward.