A Presentation : Seconds First: The Role of Second Liens in the Mortgage Crisis and Rescue

This presentation explores the impact of second liens on the 2007 and 2008 mortgage crisis and the ongoing financial rescue. The presentation relies on data from the 2001 and 2007 American Housing Surveys. The major questions addressed in this presentations are:What happened to the use of second liens and private mortgage insurance (pmi) prior to the home mortgage crisis of 2007and 2008?How much more risky are homes financed with multiple liens than homes financed through a single lien?What is the size of a typical second lien compared to a first lien?Why should a mortgage rescue plan deal primarily with seconds first?How could the bankruptcy process be used to provide relief to struggling homeowners and deter future mortgage problems?This file is a short (1,617 words plus seven tables) power-point styled presentation