Mortgage mania persists with aggressive loans
Less than a year into a deep mortgage slump caused by unprecedented loose lending standards, exotic and potentially risky mortgage types are creeping back into the local market.
From Atlanta’s boutique mortgage brokers to the city’s largest lenders, new niche mortgages are being rolled out, even as loan standards and underwriting are at their highest levels in years.
Local mortgage lenders said the new loan types being introduced are part of the market stabilizing after the shocks of the 2007 subprime meltdown, and meeting the needs of consumers still buying homes.
Others said some lenders are gambling the market has already hit bottom, and may not be prepared for further mortgage slowdowns.
