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Home » Store » Taxable » Default More Likely on NonPrime Loans, OFHEO Warns

Default More Likely on NonPrime Loans, OFHEO Warns

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Subprime and alternative documentation loans are more likely than prime credits to default and prepay, a new study by researchers at the Office of Federal Housing Enterprise Oversight suggests. “While nonprime lending has experienced steady, if not explosive, growth over the last decade, very little is known about the performance characteristics of these mortgages,” says Anthony Pennington-Cross, the author of the working paper.
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