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Tuesday, December 4, 2007

Alt-A losses climb

Expected loses for loans originated in 2006 may climb to 20%.  Unlike what the fed and PaulSivReeze have been telling us, this thing is not contained.  This is just the beginning.

Alt-A loans are loans made to people with better credit score than Sub Prime but without income verification.  Yes, a janitor making $150,000 is fine.  How much mortgage do you want?
 

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