timba-
isn't an alt-a loan a case where the borrower has the credit history to get a prime loan, but doesn't have every bit of documentation necessary to get that prime loan?
as an example, AHM has an average FICO score on their loans of 710...is there an exact minimum FICO score for a prime loan? i've read different articles stating numbers from 680 to 720, but in any of these cases, AHM is at least in the prime ballpark, and they buy insurance on the loans with higher LTVs or where they feel there is greater than average risk
by comparison, NEW, one of the bigger subprime lenders, and one with a lot of current "drama," has an average FICO score on its loans of about 620
that's a pretty huge difference it would seem to me
also, AHM has an average LTV on its mortgages of right at 70%, so that would seem to alleviate the 80/20 concerns you mention as being subprime
perhaps i am missing something here, so i'm curious as to your views on this |
