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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (78501)	2/5/2007 1:23:34 PM
From: GST	Read Replies (1) \| Respond to of 110194

John: Have a look <The extent of reset sensitivity is probably the most important issue in the analysis of real estate today. How big is it likely to be? The mortgage loan database included nearly twenty million active first mortgages originated in 2004 and 2005, representing almost $4 trillion in debt. Relatively few of these mortgages are in danger of reset difficulties. The mortgage loan data set included 12.1 million fixed-rate mortgages with total origination amounts of $2.052 trillion. While these homeowners can still possibly default on their mortgages, usually due to job loss, divorce, serious illness, or death, such events represent only the normal background rate of default and lender loss. By definition, these mortgages will not experience reset difficulties – in particular, they will not experience reset sensitivity. The remaining 7.7 million currently active adjustable-rate first mortgages originated in 2004 and 2005 represent $1.888 trillion in debt. Some of these adjustable loans will face reset sensitivity over the next few years, but most will not.> Message 23253808