Conforming mortgages for existing homeowners are so tightly underwritten at this stage that it’s a trivial step-up in default risk tho.
Replies
Agreed in full. Things have changed a lot in the underwriting business over the past thirty years that most folks don't understand.
aug 30, 2025, 10:34 pm • 1 0 • view
I'm not sure second homes even get higher rates than primaries as a rule. Don't think people appreciate how none of this matters to the underwriter with sufficient debt coverage and 20%+ down.
aug 30, 2025, 10:08 pm • 37 2 • view
aug 30, 2025, 10:18 pm • 6 0 • view
The market has changed quite a bit, this is from 2021 when Cook took out the mortgages at issue
aug 30, 2025, 10:34 pm • 6 0 • view
Are these LLPAs based purely on risk, or do they also effectively cross-subsidize mortgages on, e.g., primary residences?
aug 30, 2025, 11:50 pm • 3 0 • view
The current second home adjustments, especially
aug 31, 2025, 12:54 am • 2 0 • view
That's not insignificant
aug 30, 2025, 10:22 pm • 0 0 • view
Keep in mind that this is fee, as a rough estimate divide by 4 for the change to rate
aug 30, 2025, 10:25 pm • 1 0 • view
Yep
aug 30, 2025, 10:22 pm • 0 0 • view
Thank you!
aug 30, 2025, 11:26 pm • 0 0 • view
Right, like presumably this is available to lenders?
aug 30, 2025, 10:04 pm • 2 0 • view
if it mattered they would know
aug 30, 2025, 10:04 pm • 2 0 • view