Scariest Chart EVER: Loss Severity, Subprime First-Lien

This chart shows the loss severity for subprime first-lien mortgage loans in the tri-state area (New York, New Jersey, and Connecticut). Loss severity is defined as the average size of a loss if one occurs. A loss occurs when a foreclosed home sells for less than what the borrower owes to the mortgage lender. The amount of that loss includes the costs to foreclose and liquidate, as well as taxes and declines in property value. This report uses all securitized nonprime mortgage loans from First American CoreLogic’s Loan Performance data set

NOTE:  in this chart read 0.7 as 70%

Full Story Alea | Scariest Chart EVER: Loss Severity, Subprime First-Lien.

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