1  Based on servicer data from First American LoanPerformance. Serious delinquencies include loans ninety days or more past due or in foreclosure. 2  Historically, more than half of foreclosure starts resulted in sale of the property. 3  Based on information about loans in securitized pools from First American LoanPerformance.
BIS Review 26/2008  1  This weak underwriting might not have produced widespread payment problems had house prices continued to rise at the rapid pace seen earlier in the decade. Rising prices provided leveraged borrowers with significant increases in home equity and, consequently, with greater financial flexibility. Instead, as you know, house prices are now falling in many parts of the country.