Thanks for that!
So, apparently “predatory lenders preying on little old ladies” aren’t the source of all the subprime lending problems.
According to the Wall Street Journal:
Mortgages for investment properties constitute a major chunk of defaults in four states with the fastest-rising rates of seriously delinquent loans, according to data released Thursday by the Mortgage Bankers Association.
Mortgages on non-owner occupied properties in Nevada accounted for 32% of prime mortgage defaults as of June 30 as well as for 24% of subprime loan defaults, the MBA said.
In the rest of the country, non-owner occupied homes accounted for 13% of prime defaults and 11% of subprime defaults.
Other states with high investor loan defaults include Florida, California, and Arizona.
Why do I get the feeling that these borrowers couldn’t care less if the banks take away their properties?
Why do I get the feeling that it’s going to be you and I who suffer for it?
Investment Homes Make Up A Major Part of Mortgage Defaults - By Ruth Mantell, The Wall Street Journal
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