Alt-A cracks appearing

[c1ue]

http://www.reuters.com/article/bondsNews/idUSN2636866620070626?sp=patrick.net

90-day delinquency rates according to S&P:

2006 vintage Alt-A: 4.21%
2005 vintage: 1.59%
2004 vintage: 0.91%

[DemonD]

you know what is going to be the worst out of all of this, is i bet you anything the 2007 vintages are going to be even worse than 2006 when all is said and done. frothy lending is still taking place out there. absolutely mind boggling.

[bill]

They keep saying the defaults won’t happen with the A paper.
When the REO is selling for a 100K less then the principal balance of the A paper home owner next door they will walk away or stay and pay to keep the credit rating.