In a world where banks held their notes to maturity and there were no derivatives, then the answer would be 0 to 1%.
Since we are not in that world. I'd venture to say "it matters not" to them.
That's an interesting claim. If no banks held any mortgages, no banks would be losing money on real estate.
Is that the case?
He doesn't seem to understand the implications of a bank holding a HELOC second on an underwater and perhaps non-performing first mortgage held by somebody else.
People try to be patient with the insults, snide imputations and the screaming about "math", but the trolling gets old.
Nice chart on the new loan originations market share, BTW.