by Bill McBride on 12/14/2007 03:51:00 PM
Friday, December 14, 2007
|Click on graph for larger image.|
This would be a nice looking chart, except those are the percent non-performing assets by month.
Yes, by month!
BTW, Herb Greenberg provides this quote from an unidentified source: Extrapolating Downey to WaMu, others
DSL was supposed to be the best underwriter. That’s why I owned it at one point. They were the lowest loan-to-value lender, which is interesting considering the data we are seeing now. The problem is that lenders did a horrible job tracking if there was a second lien behind them. Borrowers have so much leverage (first lien + second) and house prices are falling so fast, that they are just deciding to walk away from the home. This is something the Paulsen plan does not address. It’s not a question of being able to make the next payment…it’s looking at the value of your home and thinking ‘wow I am going to be under water for a long time ...
Posted by Bill McBride on 12/14/2007 03:51:00 PM