Hello from Belgium,

Can you tell me what are the big differences between home equity loans and conventionnel loans proposed by agencies like ginniemae, fanniemae,...

Can we find "A loans" with "B-C-D loans" in the subprime sector ? or "A loans" are only in the conventionnel sector ?

Because I have to realize a thesis, I would like to obtain a lot of informations about "home equity loans asset backed securities" in the USA. Who can help me ? Thank you very much in advance !!!!!!

Catherine

-- catherine platteuw (catherine.platteuw@swing.be), May 27, 2000

Answers

While interviewing for a story on sub-prime lending, I have been told several times that one of the main problems with non-conforming loans is how often A rated consumers end up in the B/C market. The director of the Fair Housing Center in Toledo, OH, USA, (Lisa Rice) told me that according to Freddie Mack statistics, 40% of sub-prime loans are to A rated customers that would be eligible for convetional laons at better rates. I would contact Freddie Mack and ask them to confirm those numbers. Joel Mathewson Toledo City Paper

-- Joel Mathewson (jmathew@pop3.utoledo.edu), June 07, 2000.