Re: Delinquency Rates
Posted by Jim V on July 24, 2007 at 13:34:22:
In Reply to: Re: Delinquency Rates
Posted by Nick(Colorado) on July 24, 2007 at 08:10:39:
Hey Nick,
I think weakening in the prime segments will require either a recessionary environment, or very significant reductions in existing home values, or both. One chart I looked at showed national 2006 originations as being 59% prime, 21% Alt-A and 21% subprime. I know that's more than 100%, I'm assuming they rounded numbers. Even though 81% of those Alt-A originations were low-doc or no-doc, a significant number of them were probably within underwriting guidelines, just hard to document. Resets on Alt-A variables are a fairly small segment of the market and shouldn't cause the same sort of issue sub-prime resets are doing now.
All that's just my opinion though, I'm certainly no economist. Credit Suisse has some interest charts floating around regarding subprime resets, if you are interested try looking at www.recharts.com
On comptroller advisories, I think Washington Mutual just dropped their 2/28 loan program, which pretty much fit into that "risky" type product. I suppose the two years of profits were worth ignoring the advisories, at least in their opinion.
Jim
Follow Ups:
- Re: Delinquency Rates - Nick(Colorado) 16:06:43 07/24/07
(2)
- Re: Delinquency Rates - Jim V 01:28:15 07/25/07
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- Re: Ammendment - Jim V 02:34:08 07/25/07
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