Line is starting to get blurry between HML and Conventional

[Tim S.]

I've noticed a recent trend where HML are starting to ask for loads of documents (W-2's, Bank Statements, etc.) in order to qualify for loans. On top of these documents they are now requiring the borrower to have a fairly decent credit score (660 and up for some).

My question is, if they are requiring all of this, why not just get financing from your local bank or traditional mortgage lender and save a TON of cash! I thought this was the selling point of using HML? Meaning I as a HML will qualify you based entirely on the property/deal and NOT your financial status. In return, you pay me a higher interest rate (9-14% plus points) for qualifying you based on the deal ONLY.

However, these HML are requiring everything that conventional lenders require while still charging points out the a**! I don't see the point of using them anymore?.......