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Alternative Mortgage Instruments In California, Edward S. Washburn

Akron Law Review

Much interest has been generated recently in California and elsewhere in what have been termed alternative mortgage instruments (AMIs). Two separate sets of pressures have been responsible for this. One has been the tremendous increase in the cost of lendable funds requiring constantly higher yield on each lender's overall mortgage portfolio. This has been induced by the inexorable increase in interest rates required to be paid by mortgage lenders in order to obtain lendable funds for home ownership loans, along with unremitting escalation of operating costs. The second pressure has been the persistent escalation of the cost of the conventional …