Tag: default risk

How about an independent study on home load default risks?

A new study by First American Real Estate Solutions says that the risks of exotic homes loans should have no significant impact on the economy.

“The study concludes, however, that while individual families and firms that are involved with the riskiest loans may suffer, on a national basis the impact of mortgage payment reset and subsequent default will not significantly impact the economy, as it will result in approximately $110 billion in losses, or less than 1 percent of total U.S. mortgage lending annually.”

Excellent. But I’ll take that data with a grain of salt.