The new courtroom reasoned one Fremont because the a loan provider have to have approved that loans to your very first three qualities only revealed had been “destined in order to property foreclosure” except if the latest debtor
could re-finance the borrowed funds during the otherwise nearby the stop of basic rate period, acquire in the process a special and you can reduced introductory rate. [Mention fourteen] The fresh new fourth grounds, although not, will make they basically hopeless for subprime individuals in order to refinance unless homes cost improved, as if property costs stayed constant otherwise declined, a borrower that have a mortgage having that loan-to-worthy of ratio of just one hundred or so per cent otherwise a hefty prepayment punishment was not going to feel the requisite guarantee otherwise monetary capacity to see a different sort of mortgage. read more