I have never heard of Alt-A mortgages, but when you add these to the subprime market, it seems the exposure to dodgy loans is doubled. What puzzles me is that builders seems to use them a lot, but reports on the news say the Inland Empire (LA) has seem a recent improving housing market. I guess we will see if tightening credit and foreclosures really have downward pressure on prices over the predicted 6-12 months.
