More Risky Mortgages Funded

MoneyTips

Some trends fade and then return after a few decades or so, like bell bottoms and tie-dye. You probably have a few things in the back of your closet waiting patiently to become a hot new retro-style – whether that's good or bad for society in general.

Unfortunately, that's true for financial trends as well as clothing. Higher-risk mortgage lending is on the rise again as consumers stretch to overcome soaring home prices and tight credit requirements.

According to data from Inside Mortgage Finance as reported in the Wall Street Journal, approximately 30% of loans that were securitized by the government mortgage backers Fannie Mae and Freddie Mac went to homebuyers with debt-to-income (DTI) ratios of more than 43%. That's almost twice ...

from MoneyTips http://bit.ly/2HNfh4h