Overall cumulative default rates (note the sea-change starting with the 2004 vintage):
In the bleakest testimony yet heard, Edward Pinto, former Chief Credit Officer of FannieMae, suggests that the magnitude of the problem, on his figures, is larger than non-Roubini estimates.
Mitigation must be forthcoming ... we've lost a lot of time already.
It's not just loan modifications, at the margin.
It's a restructuring of all or most mortgage debt, quite possibly, to allow for price falls without the market becoming seriously illiquid.
It's also a change in the legal relationships among lender, borrower, servicers, brokers, and investors, in whatever type of products, products that may also get new transparency requirements, at a minimum.
Tuesday, December 9, 2008
Pinto: 8 Million Defaults
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