by Bill McBride on 6/17/2010 06:47:00 PM
Thursday, June 17, 2010
From Zach Fox at SNL Financial: Analysts believe loan mod redefaults could hit 70%
Diane Westerback, S&P's managing director of global surveillance analytics, told SNL that the previously reported 30% to 40% redefault rates typically only count borrowers after two or three months of payments. A year after the modification, Westerback expects redefaults to hit between 60% and 70%.More shadow inventory ...
Fitch Ratings on June 16 issued similar projections, albeit only for subprime and Alt-A loans in RMBS. The rating agency projects modifications on those product types to redefault at a 65% to 75% range, while prime loans in RMBS are expected to redefault at a rate of 55% to 65%.
Posted by Bill McBride on 6/17/2010 06:47:00 PM