Nonprime borrowers in negative equity are alike
Nonprime borrowers in negative equity are especially concentrated in housing markets that experienced large swings in house-price appreciation, research from the New York Federal Reserve shows.
The research also finds that negative-equity borrowers are far less likely to prepay their mortgages and are more likely to become seriously delinquent and default. The analysis also finds that these borrowers took out loans near the peak of the housing market and their loans had high loan-to-value ratios
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