John, also include “the”. You say the housing market…
Here’s an important point that none of us have addresed before, and is worthy of its own thread.
With the prevalence of 100% CLTV in 2 loans, there is NO PMI. No more insurance to protect the lender.
Under traditional financing, the owner put down 20%, or paid the PMI company to insure 20% of the equity. This protected the first lender from housing drops of 20%.
What insurance does the second lender have? None.
What is the effect of no more mortgage insurance premium?
