Great. So for the few people who actually want to (and are able to) borrow money, won’t be able to.
Today, the nation’s #1 mortgage insurer announced it was reducing its exposure in the Boston market.
I don’t have the details and don’t know what this means. We’ll see.
From Bloomberg (the wire service, not our next President):
MGIC Investment Corp., the largest U.S. mortgage insurer, is scaling back coverage in California, Florida, Arizona and Nevada to reduce losses on loans.
The company will offer fewer policies to homebuyers who don’t have top credit scores, Milwaukee-based MGIC said today in a regulatory filing. The insurer will also tighten standards in parts of 14 other states.
… Homebuyers in the affected markets won’t get coverage if they borrow more than 95 percent of a property’s value …
In the high-risk regions, MGIC will no longer back so- called Alt-A mortgages where borrowers don’t provide full documentation. It also won’t insure mortgages on condominiums for more than 90 percent of their value …
Source: MGIC Says Sales May Fall as It Seeks to Reduce Losses – By Andrew Frye and Erik Holm, Bloomberg