The results in this paper also suggest that subprime lending did not increase homeownership: The number of defaults in a limited sample (about 50 percent) of subprime purchase-money mortgages
within two years of origination is almost equal to the estimated number of first-time homebuyers who took subprime mortgages.
However, the rate increases were not so severe as to curtail home-purchase activity, leaving the volume of purchase-money mortgage
loans largely unscathed.
The Mortgage Bankers Association reported that applications for purchase-money mortgages
rose 7% for the week ending Jan.
The number of defaults in the limited sample of subprime purchase-money mortgages
within two years of origination is almost equal to the number of first-time homebuyers who took a subprime mortgage.
Demand for purchase-money mortgages
will be quieted by the level and mix of unemployment.
Gibbons, President and CEO of Salem Five, recently announced the launch of a new online Instant Pre-Approval application for consumers seeking purchase-money mortgages
com to increase its vast offering of purchase-money mortgages
to home builders, Realtors(R) and financial planners.