Uhhh-Ohhh… The most creditworthy borrowers are defaulting now

Well, well, well…I hate to say “I told you so”, but imagine my surprise (or lack thereof) one morning last week when I saw the following headlines on the Drudgereport.

COUNTRYWIDE: Rise in mortgage defaults among most creditworthy borrowers…

California defaults hit 10-year high…

Wisconsin foreclosures up 23%…

MOODY’S: Housing difficulties cause for concern but no systemic threat…

The one that grabbed my attention the most was the ‘rise in mortgage defaults among most creditworthy borrowers’. I knew this would happen, but I had not seen any hard data yet to prove it. I have contacts in capital markets that have told me lots of ALT-A loan pools are in double digit delinquency, but I had not heard much about the ‘A-paper’ loans that go to the ‘most creditworthy borrowers’.

I know this info is about a week old, but from my standpoint, it isn’t really surprising or news to me. That said, I am working on a new post that deals that should help discuss this situation in detail. I have had the little picture-in-picture window on my computer tuned to CNBC the past few months, so I am very familiar with what the financial pundits are saying about the subprime mortgage mess. I have some feedback of my own, so stay tuned for that.
Thanks for stopping by and for understanding that this blog is not a real source of revenue for me, and that is why I have not been posting as frequently lately.

Stay tuned….

SoCalMtgGuy