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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: energyplay who wrote (62699)4/25/2005 9:12:48 AM
From: Ramsey Su  Respond to of 74559
 
Technically, MI companies get hit only if claims are filed and paid. However, drop in real estate prices would most likely lead to higher default rate.

Furthermore, it is usually not real estate prices but rather the ability to pay which triggers foreclosures. In high price areas such as San Diego, homeowners are stretched to the limit. This is evidenced by the popularity of ARMs, in spite of historical low long term fixed rates.