As we’ve been telling you over the past weeks, trouble is brewing in the far corners of the U.S. mortgage market. Today a new study from The Center For Responsible Lendingreveals that as much as 20% of subprime loans could go under. Not everyone agrees with those results and on today's "Street Signs" CNBC’s Erin Burnett found out why.
Quick fyi: a subprime loan is offered at a rate above prime to individuals who do not qualify for prime rate loans.
Here are the key findings:
- 2.2 million subprime home loads made in recent years have already failed or will end in foreclosure
- The foreclosures will cost homeowners as much as $164 billion.
- 1 out of 5 subprime mortgages originated during the past two years will end in foreclosure.