Tuesday, August 07, 2007

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….



Anonymous Anonymous said...

It would be interesting to contrast today's situation with the craziest time you experienced. What did get treated as prime then that wouldn't be prime today?

8/09/2007 1:22 PM  

What a mess.

3/08/2013 7:33 PM  

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