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: Mortgage Lender Implode-o-Meter

Open Bank of America?s Books And Set the Record Straight

By Implode-Explode Heavy Industries

``Bank of America admits to a 14 percent delinquency rate on its mortgages. That percentage is roughly seven times greater than the normal delinquency rate for prime loans. It is roughly three times the traditional rule of thumb for a fatal delinquency rate (5 percent) for a home lender. Losses upon default during this crisis are dramatically greater than the historic percentages, and loss reserves were at historic lows, so the traditional rule of thumb for fatal losses is unduly optimistic in this crisis.''

Full post as published by Mortgage Lender Implode-o-Meter on November 08, 2010 (boomark / email).