Whocudda thunk that?
From Reuters: Subprime, Alt-A mortgage delinquencies rising: S&P
Delinquencies for Alt-A mortgages rated between 2005 and 2007 are climbing, with total delinquencies rising as high as 17 percent in some cases, more than 6 percentage points higher than previous estimates, the ratings agency said in a report.
This ain't a subprime crisis and it isn't contained. The Alt-A shoe is dropping quickly with Option ARMS about to follow. It's gonna look like Imelda Marcos's closet is raining down on us by the time all the shoes drop. It's not the credit quality that is determining defaults, it is the LTVs (loan to values). With over 10,000,000 homes close to or at underwater within the year, this is going to explode.
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