Tuesday, October 14, 2008
Capital and Prime Mortgages
At this morning's panel, I commented that I had been mistaken in thinking that 2.5 percent was a sufficient capital cushion for prime mortgages. One of the panelists, Don Ankeny, wisely noted that Fannie-Freddie's troubles did not arise from prime mortgages, but from Alt-A loans. So for true prime mortgages, 2.5 percent may indeed be enough.
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1 comment:
Mortgages are a stressful topic right now. It's good to have as much information as possible.
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