What already happened to holders of subprime loans is about to hit homeowners with jumbo mortgages and Alt-A loans even harder

Source: www.businessweek.com

"A report from Fitch Ratings says this problem impends for more than 700,000 borrowers who took out prime jumbo loans—mortgages larger than what Fannie Mae (FNMA) and Freddie Mac (FMCC) allowed—and Alt-A loans, which went to borrowers whose credit scores placed them between prime and subprime. More subprime loans have already reset than the total number of affected prime jumbo and Alt-A loans, but payments for the newest batch will increase far more than they did for the subprime loans.

…

With loan modifications providing little help, borrowers have only a few, not terribly easy options: Pay higher monthly bills, try to qualify for a refinanced loan, or default on their loans entirely."

See on Scoop.it – Public-Private Duality, Economic Crisis, and New Financial Trends