Have Underwriting Standards Become Too Tight?

"Within the industry, the current parameters on underwriting standards have become a topic of divisive debate. On one side, many originators and secondary marketing officers share Walsh’s view that standards have constricted to a point that they are beginning to suffocate the market.

But there is also a faction that believes underwriting standards are not creating any great damage. Indeed, this side of the debate believes that current underwriting standards offer something of a life preserver to an industry that is still treading water."