Over collateralized loans beyond that can have other issues, the additional may cover market fluctuations of securities pledged.

Specific factors that might cause such a difference include, but are not limited to: American Home's limited operating history with respect to its portfolio strategy; the potential fluctuations in American Home's operating results; American Home's potential need for additional capital; the direction of interest rates and their subsequent effect on the business of American Home and its subsidiaries; risks associated with the use of leverage; changes in federal and state tax laws affecting REITs; federal and state regulation of mortgage banking; and those risks and uncertainties discussed in filings made by American Home with the Securities and Exchange Commission.

I am a violator.My partner and I debate about this very frequently due to our unusual partnership, but anyhow, here is the skinny.I strongly believe that in the Columbus, OH market that rate will fluctuate from 65% to 75% depending on the location.The demand in a war zone may be even lower then 65%, and in some of the very desirable areas may be higher then 75%.

Most investing professionals say you should leave the money invested for at least 5 years, because the market can fluctuate too much in a shorter time period.

When doing a cash out refinance and the lender says they locked in your rate, did the cost of your mortgage/discount points also get locked in or is that going to fluctuate until closing?

In addition MFH is less prone to market fluctuations, especially in the "affordable housing" segment. 

With a certain amount of internal control, (the banks and property management companies), market fluctuations were not as likely to occur and the housing market would maintain a steady increase for the investors and of course the banks.

But I'm not sure what they are safer than.......fluctuating values, perhaps?

This way you are covered for the fluctuations in the different segments of the wonderful world of real estate.

I knew it was not always 100% Garunteed but I did not know the amount could fluctuate.