Subprime market
You are missing the point. You want to know more about the past history of the borrower? The circumstances for the BK? Yes, the subprime market used to lend on common sense lending, but guess where that got the now defunct subprime lenders that would have approved a 100% LTV loan on someone that just got out of a Ch. 7, that was previously in a Ch. 13?? Yes, people deserve a second chance. But, they also need to contribute to that 2nd chance opportunity, i.e. have saved up some money to at least put 5% down, or wait until they are at least 2 years out of the BK and have re-established their credit. Then, they could go FHA, and possibly AmeriDream if they still have no money to put down. The big picture is this, the loan officer should know this even after being in the business for a short time, and should have informed the borrower(s) immediately, with a plan and a goal for the next year. People will appreciate honesty, as well as sound advice, above all and more than likely will come back the following year…as well as refer other people to you right now. My loan officers do this and their referral network grows larger and larger every day because of it.