muzie_IHB
New member
<a href="http://www.housingwire.com/2008/07/16/subprime-arm-defaulting-despite-loan-modifications/">http://www.housingwire.com/2008/07/16/subprime-arm-defaulting-despite-loan-modifications/</a>
Some interesting excerpts:
"Analysts with Moody?s Investors Service said earlier this week that a whopping 42 percent of subprime adjustable-rate mortgages modified during the first half of 2007 had become 90 or more days delinquent by the end of March 2008. That number goes up over 50 percent when you look at previously-modified loans now 60 or more days delinquent. "
Modified here meaning loans that were modified because they were at risk. Yet 42 percent are failing still despite the little help.
"Despite strained resources and and streched cash flow, Moody?s found that servicers have been picking up the pace on loan modifications. As of the end of March 2008, 9.8 percent of subprime ARMs with interest rate resets in the preceding 15 months had been subject to a modification of some sort; by comparison, in December, a similar survey found only 3.5 percent of resetting subprime loans being modified.
"Side notes: <strong>For subprime borrowers whose ARMs reset in Q1 2008, 29.6 percent of active loans at reset were already 90+ days delinquent, in foreclosure, bankruptcy or REO inventory</strong> ? that percentage stood at 17.9 percent for loans resetting in Q4 ? 20.6 percent of active subprime loans resetting in Q1 2008 were modified or on a workout plan by the end of March."
That sounds pretty crazy.
Some interesting excerpts:
"Analysts with Moody?s Investors Service said earlier this week that a whopping 42 percent of subprime adjustable-rate mortgages modified during the first half of 2007 had become 90 or more days delinquent by the end of March 2008. That number goes up over 50 percent when you look at previously-modified loans now 60 or more days delinquent. "
Modified here meaning loans that were modified because they were at risk. Yet 42 percent are failing still despite the little help.
"Despite strained resources and and streched cash flow, Moody?s found that servicers have been picking up the pace on loan modifications. As of the end of March 2008, 9.8 percent of subprime ARMs with interest rate resets in the preceding 15 months had been subject to a modification of some sort; by comparison, in December, a similar survey found only 3.5 percent of resetting subprime loans being modified.
"Side notes: <strong>For subprime borrowers whose ARMs reset in Q1 2008, 29.6 percent of active loans at reset were already 90+ days delinquent, in foreclosure, bankruptcy or REO inventory</strong> ? that percentage stood at 17.9 percent for loans resetting in Q4 ? 20.6 percent of active subprime loans resetting in Q1 2008 were modified or on a workout plan by the end of March."
That sounds pretty crazy.
