I just closed this week on a RENTAL property- NO APPRAISAL, STATED INCOME SELF EMPLOYED, STATED ASSET, 105% LTV (based on automated value). Original loan HAD Mortgage Insurance even! The customers did not have a great credit score, but as you may know the TOTAL adjustments are capped at 1.75%.
It was like 2005 all over again.
In case you are wondering how this is possible, Here is Freddie Mac's data regarding the program in question called "Relief Refinance Mortgages".
Both the Same Servicer and Open Access options under the Relief Refinance Mortgage offering allow LTV ratios up to 125 percent, unlimited TLTV/HTLTV ratios, and relief from standard mortgage insurance requirements to provide qualified borrowers with expanded refinancing opportunities.
They figure they are backing the loan anyways so they might be able to improve their book by refinancing people at todays lower rates. As far as the bubble era no underwriting, I think drinkers call it "Hair of the dog that bit you".
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