levin70

Richmond Fed: GSEs Encourage Mortgage Defaults

Given this, why would anyone be willing to lend in California?

The real issue isn't with availability of mortgage funds for california vs another recourse state, say the state where I live, Illinois. The issue is why is a california borrower able to get as low a rate, given all other details being the same, with the rate that I can get in Illinois?

The intervention in the market place that causes the mis-pricing of these risks is what a large portion of the problem is.

Regards