If mortgage lenders want to avoid defaults home borrowers who might default, they may wish to carefully consider homeowners with a second lien on their house. A new working paper from the Federal Housing Finance Agency points to a correlation between first-lien outcomes, home mortgages without a second home equity line lien, for instance, have a significant higher chance of success than do homeowners with a second lien on their house. Mortgages: First-lien vs second liens originations In a simple direct comparison of first-lien outcomes, the study written by Andrew Leventis, a Principal Economist at the FHFA, draws the conclusion…
FHFA: Mortgage Lenders Should Avoid Homeowners With Second Liens
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.