California mortgage broker Logan Mohtashami says the most popular product he arranged last year was a kind of mortgage that banks stopped making when the housing market blew up.

Kinecta Federal Credit Union, one of the largest credit unions in California, with assets of $3.4 billion, last year was churning out mortgages topping the Fannie Mae and Freddie Mac loan limit ($625,500) and with attached second liens valued up to $300,000. The cumulative loan-to-value ratio in some cases exceeded 89.9%, according to Mohtashami, a senior loan manager at AMC Lending Group in Irvine, Calif.

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