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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Ramsey Su who wrote (25037)1/20/2005 1:12:40 PM
From: C.N.S.  Read Replies (1) | Respond to of 110194
 
>>Say someone put 10% down on a house and MI covered to 80% LTV. If this borrower default and the house managed to sell, net of all costs at 85%<<

Just a quick nit here - as far as I know, neither MI nor mortgage pool insurance "covers to 80%". Their coverage is usually upto the first 25% (+/- 5%) of the loss. It is assumed that the rest of the equity will be extracted (via foreclosure etc) to take care of the remaining loss.