Alternative A Loans: After the subprime problem these loans were bigger and defaulting but were planned to disrupt the economy about 6 months behind the Subprime Loans. Have you noticed. Nobody is talking about this now.
Have the banks found a way to resolve these loans to homeowners?
Is this part of the economic melt down over. Is it just about to begin?
We really need to know about this or the market will collapse again and the gains in the market over the last few months will be wiped out. Its really scary that nobody is talking about outstanding loan balances that are larger than all the subprime loans compbined. And Fannie and Freddie are on the hook for much of this bad paper.
I do not have the answer - yet ! Please comment and add your thoughts. I think this must be coming just after the new year.
These days, however, Alt-A borrowers are defaulting faster and faster. The number of Alt-A loans in which payments are 60 days late has quadrupled from a year ago to nearly 13 percent, according to the mortgage research company LoanPerformance, a unit of First American CoreLogic.
What is the statis now?