California Real Estate Mortgage Underwriting To Tighten

According to Inman news today, California real estate lenders will be tightening their mortgage underwriting guidelines to compensate for higher default risks reported by homesmartreports.com. The article stated that there was a concern due to the market frenzy experienced from the coast that has now moved inland. I suspect part of the concern and where you will see tightening is on the interest-only and pay-option arm type loans.