Here We Go Again

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Oh how soon we forget. History does not repeat itself because of coincidence. History repeats itself because of the actions taken. My favorite quote is from Einstein which is "The definition of insanity is performing the same act over and over again expecting a different result". 

the new offerings are ideal for consumers who may not be eligible for conventional or government loan products due to lower credit scores, high debt-to-income ratios, self-employment, or a recent credit event such as foreclosure, bankruptcy, missed credit card, or late mortgage payment.

I can understand non QM products for those who may have businesses or in areas where it is cheaper to buy than rent, but offering products to those with high debt to income, lower credit scores and those who have had a foreclosure or bankruptcy recently without having to take any debt management education is inconceivable. How many of these loans do you think will become non-performing? As a note investor, this provides us inventory. As a human being with morals this is not what we want. We do not get excited or are we proud to see people fail. Unfortunately there are many businesses that appear to be setting people up to fail. Our job as secondary note investors is when we acquire this debt to get the borrowers on a payment plan to keep their home. Something many of the larger lenders fail to do.

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