tag:blogger.com,1999:blog-5162017059966809570.post2983988667456500066..comments2022-11-27T16:05:59.125-05:00Comments on Jig's Old Saws: Subprime Mortgage HistoryW2JIGhttp://www.blogger.com/profile/06117430313615743258noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5162017059966809570.post-20063346758366249622008-03-26T13:49:00.000-04:002008-03-26T13:49:00.000-04:00Thanks, samantha! I've seen that Lonski quote ever...Thanks, samantha! I've seen that Lonski quote everywhere, but never been able to track it back to an original document (It might be in one of Lonski's articles at <A HREF="http://credittrends.moodys.com/economist_profiles.asp?author=200" REL="nofollow">moodys.com</A> for $)<BR/><BR/>From Brookings, <A HREF="http://www.brookings.edu/papers/2007/10_mortgage_industry_downs.aspx" REL="nofollow">Credit Crisis: The Sky is not Falling</A> (Oct 2007) "Yet among all U.S. residential mortgage originations, subprime loans altogether comprised a cumulative total of under 13 percent from 1994 through 2005, though they rose to 19 percent in the year 2004 and 21 percent in 2005, according to the Mortgage Bankers’ Association (MBA). This means at least 87 percent of residential mortgages as of mid-2007 were not subprime loans, according to the MBA’s delinquency studies."<BR/><BR/><A HREF="http://query.nytimes.com/gst/fullpage.html?res=9C03EED71E39F930A25752C0A9649C8B63" REL="nofollow">Lonski</A> in 2002, "Interestingly enough, there are important segments of the housing sector that have run into a diminished ability to borrow -- the subprime borrowers. Suppliers of credit have reduced the amount of money available, particularly for manufactured housing or mobile homes."W2JIGhttps://www.blogger.com/profile/06117430313615743258noreply@blogger.comtag:blogger.com,1999:blog-5162017059966809570.post-32924529283464649542008-03-25T05:53:00.000-04:002008-03-25T05:53:00.000-04:00In the past years, the private sector has dramatic...In the past years, the private sector has dramatically expanded its role in the mortgage bond market, which had previously been dominated by government-sponsored agencies. Especially subprime mortgages that became increasingly popular in recent years are considered higher-risk loans because they typically draw borrowers in with an initial low “teaser” interest rate, which can spike upward after the first few years. Subprime mortgages proliferated in the early part of the 21st Century. About 21 percent of all mortgage originations from 2004 through 2006 were subprime or <A HREF="http://www.badcredit-mortgages.org.uk/" REL="nofollow">bad credit mortgages</A>, up from 9 percent from 1996 through 2004. Subprime mortgages totaled $600 billion in 2006, accounting for about one-fifth of the U.S. home loan market.Kellyhttps://www.blogger.com/profile/07061784344080129799noreply@blogger.com