And about another 8 million have a mortgage with a loan to value ratio between 95 to 100%.
When you roll in the insurance fee into the loan balance you have a loan to value ratio that starts at over 98%.
But the trouble is that you have millions of houses that are deeply underwater 12 million of them already underwater today and about another eight million have a mortgage with a loan to value ratio between 95 to 100%.
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Will there be certain debt-to-income ratio or loan-to-value ratio thresholds imposed?
After a deed-in-lieu of foreclosure, preforeclosure sale, or short sale, there is a mandatory waiting period of two years for a loan with an 80% maximum LTV (loan-to-value ratio), or four years for a loan with a 90% LTV.
For example, the Fed could pop housing bubbles by imposing a maximum loan-to-value ratio for mortgages.
The loan-to-value ratio of Zions' commercial real estate portfolio is low at 62%.
The percentage of riskier securities like subprime mortgages and mortgages with a loan-to-value ratio of greater than 90% skyrocketed.
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Under the Obama plan there is no upper limit on this loan-to-value ratio.
The biggest success rate occurs when the loan-to-value ratio is below 66%, a condition that rules out recent subprime borrowers.
The coming change will allow all borrowers with loans backed by the company, regardless of their loan-to-value ratio, to benefit from the streamlined program.
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This can be seen by comparing the median loan-to-value ratio of underwater borrowers by age, which is lower in the younger age brackets (see Figure 1).
The previous maximum loan-to-value ratio of 125% has been eliminated.
The substantial drop in delinquency rate and loan-to-value ratio for borrowers who purchased homes in the years after 2007 is likely a product of the tightened lending standards implemented in the post-bubble housing market.
Because the appraisal didn't lower his loan-to-value ratio, and despite his high credit score, Mr. Lattas says he's going to end up with a mortgage rate that's a quarter of a point more expensive than the lowest rates available.
The median loan-to-value ratio among underwater borrowers gradually rises by transaction year, peaking at 133% for those who purchased their homes in 2005, before falling slightly for those who purchased homes in 2006 and 2007 and falling rapidly in subsequent years.
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