Eight Takeaways on Mortgages After the reference Housing Bust
True, Canada — along with Israel, Singapore and South Korea — has tried its hands at macroprudential tweaks, but with limited success. New Zealand’s are taking the form of what bankers are calling a “10/80 rule,” whereby only 10 percent of new mortgages underwritten can have to loan-to-valuation ratios of more than 80 percent. The measures are designed to cap household debt as much as head off an asset bubble.
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The share of FHA borrowers with incomes above $100,000 has nearly doubled since 2007, to around 15%, according to the Fed researchers, but the median incomes of FHA borrowers was still 40% lower than incomes of borrowers taking out conventional loans. 3. Large racial and ethnic wealth gaps persist. The number of loans for home purchases by Asian and white borrowers increased by 15%, while lending to African-Americans and Hispanics increased at less than half that rate.
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