The only distinction you need to pay attention to at this point is the distinction between purchase-money mortgages
and the other non-purchase forms of mortgage lending, such as refinance, reverse mortgages and loan modifications.
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.
* Refinancing a borrower or providing a purchase-money mortgage
to a borrower where the debt ratio has either increased or is beyond the borrower's financial means: Think about this for a minute.
In addition, the refinance business will continue to fall off, leaving lenders competing fiercely for purchase-money mortgage
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.