Subprime mortgage market in trouble
Friday, February 16th, 2007WASHINGTON - Is a blowout taking shape in the impaired-credit mortgage market? Could lax underwriting standards during the housing boom years — no verification of applicants’ incomes or assets, low or no down payments, and big mortgages to people already saddled with heavy consumer debts — finally be coming home to roost?
The omens are unmistakable.
Delinquencies in the $1.3 trillion impaired-credit mortgage market hit 12.6 percent in the latest quarter, up from 11.7 percent. Delinquencies exceeded 13 percent among borrowers with subprime adjustable-rate loans.
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