Want a second mortgage?
9 novembre 2007 – 9:44WASHINGTON - The common practice of homebuyers with shaky credit taking out second mortgages for downpayments is ending because there’s no investor demand for securities backed by such loans.
The availability of second-mortgage financing for subprime borrowers has all but disappeared, according to a trade publication’s survey last month of more than 1,000 mortgage bankers and brokers.
Typically, homebuyers who couldn’t come up with 20 percent of the purchase price for a cash downpayment were required to buy mortgage insurance from companies like PMI Group Inc., Radian Group Inc. and MGIC Investment Corp. to protect lenders from default.