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Friday, June 22, 2007

BofA Sees Worse Mortgage Defaults

by Calculated Risk on 6/22/2007 01:51:00 PM

From Bloomberg: Bank of America Report Sees Worse Mortgage Defaults

Losses in the U.S. mortgage market may be the "tip of the iceberg" as borrowers fail to keep up with rising payments on billions worth of adjustable-rate loans in coming months, Bank of America Corp. analysts said.
"The large volume of subprime ARMs scheduled to reset at higher rates in '07 and '08 will pressure already stretched borrowers," forcing more loans into foreclosure, the Bank of America analysts wrote from New York. A collapse of the Bear Stearns funds "could be the tipping point of a broader fallout from subprime mortgage credit deterioration," they said.
Didn't the CEO of BofA say the housing drag was about to stop?