“Here It Comes” (Prime Delinquencies)
The Market Ticker ^ | 4/22/09 | Karl Denninger
Posted on Wed Apr 22 2009 09:05:01 GMT-0500 (Central Daylight Time) by FromLori
I and others have for nearly two years said that “subprime” was going to be a side show compared to both ALT-A and “Prime” delinquencies on mortgages.
All I can say now is: it’s starting.
April 21 (Bloomberg) — Fannie Mae and Freddie Mac mortgage delinquencies among the most creditworthy homeowners rose 50 percent in a month as borrowers said drops in income or too much debt caused them to fall behind, according to data from federal regulators.
The number of so-called prime borrowers at least 60 days behind on mortgages owned or guaranteed by the companies rose to 743,686 in January, from 497,131 in December, and is almost double the total for October, the Federal Housing Finance Agency said in a report to Congress today.
Of all borrowers who ended up in default, 34 percent told Fannie and Freddie they were earning less money, about 20 percent cited excessive debt as a reason for missing mortgage payments, and 8.1 percent blamed unemployment, FHFA said.
Uh huh.
It isn’t over either.
Perhaps in response to this, Freddie Mac’s acting head apparently has committed suicide:
(Excerpt) Read more at market-ticker.denninger.net ...
http://market-ticker.denninger.net/archives/979-Here-It-Comes-Prime-Delinquencies.html
This is probably the most damning “economic” news to come out yet,regarding the current financial crisis.
and I’m afraid your article offers a plausible reason fir why a man in his position would ctually do this.
And If he was murdered, this is even worse!