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Post by jeffolie on Aug 3, 2007 12:32:00 GMT -6
-Lenders also are dropping so-called piggyback mortgages, said David Stevens, head of a home-lending venture for Fairfax, Virginia-based realty firm Long & Foster Cos.“There’s just no market'’ for the loans, second mortgages used in lieu of down payments or mortgage insurance, he said today. “Nobody’s taking them. They’re radioactive.'’ About 40 percent of new mortgage debt used to buy homes last year involved piggyback loans, more than double the level in 2001, according to SMR Research Corp., a Hackettstown, New Jersey-based research firm. wallstreetexaminer.com/blogs/winter/?p=962#more-962Piggyback mortgages are when a first and second mortgage are created at the same time to purchase a house. The result is often that the new owner has put little or nothing down.
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Post by unlawflcombatnt on Aug 3, 2007 13:02:02 GMT -6
Once again, it appears that 50% of mortgages last year were either Alt A or subprime. If banks and mortgage orignators stop making all subprime and Alt A loans, only 1/2 as many will be made after that. If that happened, home sales would drop nearly 1/2. Talk about surplus inventory. And then there're the foreclosures....
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Post by jeffolie on Aug 3, 2007 13:06:41 GMT -6
Piggyback loans are often considered prime loans. This happens with 80/20s.
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