Tuesday, June 16, 2015
"Fannie Mae: Loan-To-Value Ratio Now Higher Than During Housing Bubble"
"At last. Residential mortgage (1-4 unit) lending is almost back to zero percent growth!
...At least for 4% coupon Fannie MBS, the average LTV is higher now than during the housing bubble! So much for the story that Fannie and Freddie are “too tight” with mortgage credit.
But...how low should Fannie and Freddie expand (drop) their FICO box?
It is like a raccoon riding on the back of an alligator.
The raccoon hopes that the economy doesn’t tank and home prices fall (again)."
Ref: Raccoon Econ 101