The survey also found that 62 percent of overall industry respondents and 76 percent of lender-only respondents said they did not believe piggyback loans
pose a threat to the stability of the mortgage industry.
can be used by borrowers to avoid having to pay for private or government mortgage insurance.
Prime was two percent, unemployment was at record levels, my piggyback loans
averaged about 18 percent and FHA and VA loans were at 17 percent and four-five points.
In recent years, homebuyers in New York took out subprime loans at rates higher than most other large cities and increasingly relied on piggyback loans
, leaving our homebuyers highly leveraged and vulnerable to default.
have taken 40 percent of the market share from private mortgage insurers.
4062 restores the maximum loan size to $2 million and allows piggyback loans
The 7(a) program was shut down for a week in January and SBA imposed the $750,000 cap and a ban on piggyback loans
because it feared the program would run out of money.
The year-over-year increase was driven by increased volumes and deteriorating credit performance mainly in two products - higher LTV subprime loans and 80/20 piggyback loans
- which we have substantially eliminated from our product offerings through recent guideline cutbacks.
In rapid fashion, lenders were rolling out an increasing amount of adjustable-rate mortgages (ARMs), interest-only loans, stated-income loans, payment-option loans, piggyback loans
, and 40- and 50-year mortgages.
However, as can be seen from the table, much of the change, particularly since 2008, reflects substitution among high-LTV credit enhancement alternatives, including nonconventional FHA and VA loans and junior-lien piggyback loans
The proliferation of what Fed chairman Alan Greenspan dubbed exotic mortgage products such as adjustable rate loans, piggyback loans
, interest only loans, and home equity loans, whose monthly payments can as much as double if interest rates rise to not unfathomable levels, as well as mixed economic signals such as choppy job growth, and the way real estate appreciation has exceeded salary increases have provided fuel for many an apocalyptic scenario.
As a result, even though the company's overall persistency rate has continued to improve, we remain cautious of the current trends exhibited by the housing markets and the popularity of mortgage insurance avoidance products such as piggyback loans
, which have resulted in pressures.