Housing Lenders Fear Bigger Wave of Loan Defaults

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Of particular concern are “alt-A” loans, many of which were made to people with good credit scores without proof of their income or assets.

“Subprime was the tip of the iceberg,” said Thomas H. Atteberry, president of First Pacific Advisors, a investment firm in Los Angeles that trades mortgage securities. “Prime will be far bigger in its impact.”


Some guy walked into your office and said "Yeah I have a job and an old house , no problem. Gimme money" and you gave him a 350 000 $ loan without checking on him ? And you did this thousands and thousands of times ?

You deserve to go bankrupt. I have no sympathy for you.
My sympathies lie for the mess you're making of the global economy with this idiocy.


But now, some borrowers could see their payments jump 50 percent or more, and they may not be able to sell their properties for as much as they owe.


Oh yeah , honest ! You wont have that house in two years when the payments jump ! You can just sell it !

Aha. The music has stopped playing , and it's time for everyone to find a safe chair now. Only some clown stole them all and in this game of musical chairs all the chairs are missing.