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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Benkea who wrote (54473)	6/17/2000 12:14:00 PM
From: Gary Burton	Respond to of 99985

Benkea--I live in Canada so I'm not familiar with US home loan practices--but in Canada, the major banks go from their normal 75% of appraised to a 90% 'high ratio' basis only with a gtee from a gov't agency --they then add in the 1/2%gtee fee to the overall lending rate that the borrower pays--but the banks themselves are protected from the increased risk caused by lending beyond the standard 75% (which is I gather 80%in the US). So my impression is that in the US it may work somewhat the same way--ie the banks have a gtee in there somewhere on higher ratio loans?