Quote:
Originally Posted by Papa_Complex
Some numbers:
- In 2007, roughly 13% of mortgages were subprime. Source[/url] |
Yet the same source says according to their survey 20% of borrowers "face foreclosure due to predatory loan terms and multiple refinances."
It is a pretty safe bet people in that group (which I would imagine included a lot of subprime) didn't have a bunch of equity before values started dropping and didn't have fully insured loans.
Quote:
Originally Posted by Papa_Complex
- In 2009, roughly 37% of mortgages issued were insured by FHA. This compares to 7%, in 2007 and 26%, in 2008. Source
- The Veterans Administration guaranteed 6.7% of mortgages made in 2009, 4.9% in 2008, and 2.7% in 2007. Source |
So what, there was a big increase in insured mortgages after the housing bubble burst and easy credit dried up. I would expect nothing less. My guess is the numbers for 02-06 look a lot more like 2007 than 2009. In other words the large majority of loans written during that time weren't fully insured, though they may have had PMI.
Most of these problem loans (a lot of them aren't "subprime", they suck but don't fall in the subprime basket) were written from 02-07. When real estate and banks started tanking in 07, 08, and 09 easy credit dried up. In order to get loans people had to either demonstrate they were financially capable of actually paying the money back or get a government insured loan.