Mortgage Loan Characteristics–Homeowner Equity Study
What are the equity levels of the current homeowners in the CFD/Project, considering that homeowners with significant amounts of negative equity have much higher levels of mortgage duress and special tax delinquencies?
Although a CFD that has a significant number of homeowners may be regarded as being a strong credit, if a substantial share of these homeowners has negative equity, then the marketability of their homes may be impaired and the amount of their mortgage debt on the homes may exceed the current market value.
Example:
Empire Economics recently performed a Mortgage Loan Characteristics-Homeowner Equity Study for a CFD in Riverside County, and the analysis revealed that although all of the homes were occupied, a significant share of the homeowners had high levels of negative equity, a significant disclosure factor:
Although a CFD that has a significant number of homeowners may be regarded as being a strong credit, if a substantial share of these homeowners has negative equity, then the marketability of their homes may be impaired and the amount of their mortgage debt on the homes may exceed the current market value.
Example:
Empire Economics recently performed a Mortgage Loan Characteristics-Homeowner Equity Study for a CFD in Riverside County, and the analysis revealed that although all of the homes were occupied, a significant share of the homeowners had high levels of negative equity, a significant disclosure factor:
