Today Lender Implode.com reports that 80 US mortgage lenders have now gone bankrupt since late 2006. Remember the clause in many Wall Street packaged CDO's that said mortgage companies had to buy back mortgage loans should a certain percentage of them turn bad? Who will be left to buy these bad loans back? The Adjustable Rate Mortgage Reset Schedule is something to behold. It turns out we are at month 5 of a 60 month long run of resets at higher and higher rates as we go. Seems like more defaults and lender implodes are yet to follow…
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I am sorry to hear that, obviously things don't look too good… This field has become pretty instable and if we don't do something right away things can get a lot worse. We could use a specialist advice here.
Actually since I wrote this article last June 2007, the number has increased from 80 to 255 US mortgage lenders now bankrupt since late 2006. More to come still I think. See http://ml-implode.com/ for latest update.