atlanta real estate and McDonough Real Estate: Sub prime Loans?
 
The worry is, what happens to the economy if enough Atlanta and McDonough homeowners go into default and to the financial markets if enough investors take a bath on mortgage-related securities.
The market may want to brace itself for more surprises. To one degree or another, all of these lenders are facing the same kind of difficulty and Atlanta Real Estate and McDonough Real Estate owners are feeling the pressure of rising interest rates and tight guidelines from the lending institutions
Last year, 13.5 percent of mortgages originated in the U.S. were sub prime, according to the Mortgage Bankers Association, compared to 2.6 percent in 2000. Overall, the sub prime market was $600 billion in 2006, 20 percent of the $3 trillion mortgage market, according to Inside Mortgage Finance. In 2001, sub prime loans made up just 5.6 percent of mortgage dollars.
By the end of 2006, sub prime delinquencies more than 60 days late jumped to almost 13 percent, compared to 8 percent a year earlier, according to Loan Performance.