Date: Mon, 2 Jul 2007 22:08:41 -0500
From: Mark Bole 
Newsgroups: misc.invest.financial-plan
Subject: Re: bank exposure to real estate loans
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Jan wrote:
> wonder what the impact to consumers will be when the full impact on 
> banks lending habits is digested as banks apparently held about 25 
> percent of their total loans in real estate in the 1980s but as of now 
> are holding total loans in real estate at the high percentage of almost 
> 60. banks can't just unload this stuff and what will that do to banks 
> overall health?

What I don't understand is why PMI (private mortgage insurance) hasn't 
made this all moot?  Isn't it common for the lender to be protected for 
most risky loans as a result of the consumer paying the PMI premiums?


-Mark Bole