Mortgage applications growing thicker with ‘explosion of disclosures’

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The size of mortgage applications have swelled in some cases to 500 pages since the housing crisis, CNNMoney reports. They’re thick with disclosures as banks try to cover their backs in the effort to determine buyers’ creditworthiness.

Applications used to run about 100 pages as recently as 2006, Peter Grabel, a loan officer for Luxury Mortgage in Stamford, Conn., told CNNMoney.

“We now need two years’ tax returns, two months’ bank statements, sourcing of every deposit … on every file,” Grabel said.

Now income and asset records, tax returns and other financial documents stuff the applications, which will become even heftier when the new mortgage rules set to take effect in January make the mortgage application process even more complicated.

Source: CNNMoney

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