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Tom O’Grady quoted in National Mortgage Professional Magazine: Report Finds High LTVs Leading to Greater Price Dips

National Mortgage Professional Magazine has quoted CEO Tom O’Grady in their latest article on the effects of higher LTVs on home prices over the past decade.

“During the housing bubble (2004-2006), it has been well documented that higher loan-to-value (LTV) ratios led to riskier mortgages, but there has been much less research showing the correlation between high LTVs leading to greater price declines. We have found that as home prices decline, homeowners with high LTVs are much less inclined to stay in their homes since they have little or no equity to protect. This leads to more price declines, which has a cascading effect on other high LTV owners and a further depreciation in home values.”

Click here to read the full article or click here to read our full Home Value Forecast Update.