Here are some more numbers from 2006 in terms of product mix and average LTV for our borrowers by credit band:
2006
| Credit Range | Avg. Credit | Avg. Top | Avg. Bottom | % of Production | Avg. LTV | % Fixed | % ARM | % Exotic | % 2nds |
| 850-680 | 724.35 | 29.78 | 37.2 | 26.03 | 67.71 | 46.1 | 0.87 | 33.04 | 20 |
| 680-620 | 653.19 | 33.42 | 41.56 | 36.53 | 77 | 50 | 9.3 | 27.78 | 12.35 |
| 620-560 | 591.58 | 33.15 | 42.03 | 26.84 | 77.52 | 32.45 | 42.74 | 17.1 | 8.5 |
| 560-500 | 525.25 | 38.67 | 46.44 | 9.36 | 70.95 | 17.1 | 75.6 | 4.9 | 0.00 |
*Exotic = interest only, pay option ARMs
**2nds = HELOC, Closed end seconds, piggybacks
I think the most interesting thing here is that in the best credit band 50% of the mortgages originated were either exotic or 2nd mortgages! 50%! In the next-best credit band 40% of the mortgages were either exotic or 2nd mortgages! 40%!
These are amazing numbers. I think it gives weight to the argument that using just credit scores and LTVs to analyze whether the meltdown in subprime will or will not spread to prime market is a little too simplistic.
*Please note that these are just one company’s numbers.
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