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Home » Moody’s Issues Caution on Bank-Statement Loans
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Moody’s Issues Caution on Bank-Statement Loans

December 2, 2016
Moody’s Investors Service published a warning this week regarding mortgage programs that use bank statements and letters from accountants to verify borrowers’ income. The rating service said that type of underwriting – especially when relying on fewer than 24 months of statements – yields loans that are more risky than mortgages that have traditional income verification. Bank-statement mortgages have gained some prominence in the non-agency market this year as Lone Star Funds ...
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