Originally Posted by spdrun

Incorrect -- most of the distress didn't have to do with people borrowing 40-60% of the home's value as Hatty wants to do. It had to do with people borrowing 95-110% of the home's value.

50% loan-to-value is a very safe bet for the bank on a non-owner-occupied property, because they can easily foreclose and sell it for substantially more than the loan's value.