Real Estate News Blog June Archive

More Trouble in Subprime Mortgages

By Art C Ryter at 06/27/07 00:55

Delinquencies and foreclosures among homeowners with weak credit moved higher in the first quarter, particularly in California, Florida and other formerly hot real estate markets. Mortgage lenders and nonprofit housing organization battled over policy initiatives to be made regarding loan practices such as no-documentation loans, in which lenders do not verify that borrowers earn incomes listed on loan applications; prepayment penalties, which make it more expensive to refinance; and underwriting practices that overlook whether borrowers can ultimately repay their loans.

Original source: . More Trouble in Subprime Mortgages