wednesday, page-50

atlunch/jaysola

If I may pip in FWIW with regards to the mortgage resets and recasts. Resets are related to interest rates and recasts are related to payments. The Option Arms* if you note are related to recasts and Credit Suisse use a combination of both in their charts according to the mortgages. Recasts and resets can occur simultaneously or separately - with resets being delayed atm due to low interest rates.

Also many banks are simply not foreclosing on defaults and trying to renegotiate - so as not to realise any further losses....there is a program also being trialled in Phili re this which has been proved successful. Some may say this is just delaying the inevitable though....

Nonetheless it does nothing about the root cause of delinquencies....and prime mortgage delinquencies are on the rise having doubled recently.