Countrywide: 1 in 3 subprime mortgages delinquent

http://www.reuters.com/article/marketsNews/idUKWEN362420080129?rpc=44

Countrywide: 1 in 3 subprime mortgages delinquent
Tue Jan 29, 2008 8:37am EST


NEW YORK (Reuters) - Countrywide Financial Corp (CFC.N: Quote, Profile, Research), the largest U.S. mortgage lender, on Tuesday said more than one in three subprime mortgages were delinquent at year-end in the $1.48 billion portfolio of home loans it services.

Countrywide said borrowers were delinquent on 33.64 percent of subprime loans it serviced as of December 31, up from 29.08 percent in September. It also said borrowers were at least 90 days late on payments on 17.25 percent of subprime mortgages.

The rate of late payments rose to 7.32 percent at year end from 5.76 percent on prime home equity loans, and to 5.76 percent from 4.41 percent on conventional first mortgages, Countrywide said. For all loans, the delinquency rate rose to 8.64 percent from 7.12 percent, it said.



Can you believe they were cobbling this crap into investment vehicles that they marketed to investors as "sound, mortgage-backed securities"?

1/3 in default? How ya like them risk apples?

"JUST 1 in 3 subprime mortgages delinquent".

It'll be 2 in 3 soon enough, I bet.

Giving out all that money in order earn more, and it didn't work

I wonder what the average interest rate is on these loans?

never intended to "hold" those loans past the first few months..They all got wrapped up in pretty packages and sold on the open "market"... probably to the same con-artists who manage YOUR 201-k (and ours too :cry:..)

IT WAS ALL A PONZI SCHEME...and Greenspan knew it (and so did everyone else who had half a brain)

They all just "hoped" it would hold together until someone else was in charge when it all collapsed..

The smart-asses who put it all together GOT their money out at the beginning, and even the ones who will get "caught" will end up paying a fraction of their windfall..and even then..they will pay or it as "fines" to the government..not the poor schlubs like us who will end up paying for it 3 times..

1. our 401-ks
2. the values of our own houses
3. our wallets, when we DO end up bailing people out (which we will)

"Countrywide said borrowers were delinquent on 33.64 percent of subprime loans it serviced as of December 31, up from 29.08 percent in September. It also said borrowers were at least 90 days late on payments on 17.25 percent of subprime mortgages."

33.64 + 17.25 = 50.89

How are they defining "delinguent" here?

So the 33.64% includes the 17.25% - the difference being people between a month and 90 days behind.

for the clarification...