Regional Banks: Defining the California Ratio [View article]
I know this is a year-old thread, but history has proven that a 50% haircut on REO is conservative for residential stick built homes, and 70% wouldn't be unreasonable for construction and development (C & D) loans, or purchase loans for condos.
No one trusts the values posted just a year ago, and having no secondary market for most of the newly originated mortgages doesn't help.
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I know this is a year-old thread, but history has proven that a 50% haircut on REO is conservative for residential stick built homes, and 70% wouldn't be unreasonable for construction and development (C & D) loans, or purchase loans for condos.
Apr 13 17:59 pm
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All Comments by billddrummer »Regional Banks: Defining the California Ratio [View article]
No one trusts the values posted just a year ago, and having no secondary market for most of the newly originated mortgages doesn't help.