Affordability products are growing rapidly but still represent only a small share of outstanding mortgages. From the point of view of bank supervisors, affordability products do not necessarily pose solvency concerns.
Despite the apparent decline in underwriting standards, less than 5 percent of outstanding mortgages have a loan-to-value ratio greater than 90 percent, which means that the vast majority of homeowners have a significant equity cushion; in the event prices fall, only a very small percentage of  1/5  owners are likely to see their debts exceed the value of their homes.