The Later The Subprime And Alt-A Loan, The Greater The Default Rate
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
If you are looking for an indicator on who is defaulting on subprime and Alt-A loans, just see when they were written. A 2007 subprime loan has 26 percent chance of being in default.
These are some disturbing numbers. Is it because there is no equity in these homes or were the borrowers at the bottom of the barrel in terms of qualifying?
My guess is both are correct.
Delinquencies for Alt-A mortgages rated between 2005 and 2007 are climbing, with total delinquencies rising as high as 17 percent in some cases, more than 6 percentage points higher than previous estimates, the ratings agency said in a report.
Lower-quality subprime mortgage delinquencies soared as high as 37 percent for mortgages originated in 2006, 4 percentage points higher than previous estimates, S&P said.
Subprime mortgages originated in 2007 saw delinquencies climb to almost 26 percent, 6 percentage points higher.
“The 2007 issuance year continues to be the worst-performing vintage in terms of cumulative losses,” S&P said, regarding subprime mortgages. “Serious delinquencies” of payments 90 days late or more and foreclosures also are rising, S&P said. via Reuters.
It probably is a really good time to buy real estate - monthly payments are about equal to market rents ...
The part about the inventory is right on but in my area they are mostly low end and beat up ...
I worked for this man, he is a great con man and has done this in more than States then ...
You're right. If you come from Central Jersey (as the Boss and I do), you go to Florida at some ...
Maybe it was kryptonite...
ECONOMIC REPORT
'Prolonged' recession, higher joblessness seen likely
NABE survey indicates most economists now believe U.S. recession's started
By Mike ...
I couldn't agree more.
The newspaper has always "stuck" it to the real estate agent with rates that were much higher ...
By the way, homeowners trying to get short sale approval should be aware that lenders are comparing the initial loan ...
Ouch! Thankfully I haven't come across anything like that yet. We normally don't have situations like that in ...
well, the guy was here illegally.
serves him right. 
BY USING FIRST CLAIM INSURANCE ADJUSTERS YOU WILL HAVE THE ABILITY TO LOOK AT YOUR INSURANCE SETTLEMENT AND REALIZE FIRST ...
Comment by John Corey on 29 May 2008:
Is the issue with all sub-prime or specific types of sub-prime? The option ARM loans can swing a lot more when the loan resets.
What about the Alt-A. Are they showing the same default profile or does the data show that the issue is specific to a subset? What about recent Alt-A makes the borrowers more prone to default? Prices have gone soft or fallen in the past. Is the direction of prices the prime indicator and therefore is the key variable that will matter in future loan approval processes?