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Another mortgage fiction: 55% of income to debt service?

Another mortgage fiction: 55% of income to debt service?

New guidelines under the Home Affordability Modification Program (HAMP) will allow permanent loan modifications wherein borrowers pay a median of 55% of their income to service debts such as mortgages, car payments, credit card debts, and the like. This is called the back-end debt ratio. In normal markets, the maximum back-end debt ratio is 40%. [...]

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