Monday, November 1, 2010

Credit Suisse projects $321 billion more losses for Fannie, Freddie

Wow, these numbers are just increasing.  I don't think these projections includes much higher mortgage rates due to inflation caused by the Fed printing money.
Future delinquencies on the Fannie and Freddie books could reach between $408 billion in the base scenario analysts laid out and $464 billion in the stressed scenario. Also, analysts estimate that 76% of currently delinquent loans would eventually default with a 45% loss severity rate. Of these defaulting loans, 60% would qualify for a modification, and nearly half of the rest would redefault after the workout.
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