Pages

August 04, 2008

Alt-A defaults climb

Even as subprime foreclosures seem to be stabilizing, the problems are increasing in Alt-A mortgages, the next class above subprimes.

While many subprime loans were 2/28s or similar, i.e. interest-only the first two years, many alt-As, and even some primes, were 5/25s or 7/23s or similar. And now, the piper is calling the tune on the 25- or 23- year period.

And, here’s more on the uncharted territory of the mix of falling home prices, mixed with rising oil and food prices, that’s pushing more of these alt-A and even prime homes into trouble.

No comments:

Post a Comment

Your comments are appreciated, as is at least a modicum of politeness.
Comments are moderated, so yours may not appear immediately.
Due to various forms of spamming, comments with professional websites, not your personal website or blog, may be rejected.