The Next Mortgage Meltdown: Alt-A Default Rate to Surpass 50%

Posted by follow me , at 1:21 PM

Rating service Fitch is backpedaling on its previous optimistic projections of Alt-A mortgages, and is now calling for a higher percentage of defaults. Fitch forecasts a default rate of up to 15% in some cases.

15% default rate doesn't sound that bad, right?

Actually, those in the know are calling for well over 50% defaults on Alt-A mortgages, and a meltdown in Option Arm mortgages as well:


Its not just subprime loans anymore.


Watch CBS Videos Online


0 comments to “The Next Mortgage Meltdown: Alt-A Default Rate to Surpass 50%”

Post a comment

Subscribe to: Post Comments (Atom)

Popular entries

 

Economics reading © 2011 - The Next Mortgage Meltdown: Alt-A Default Rate to Surpass 50%