"MC" sent a few new charts of the Washington Mutual Alt-A pool WMALT 2007-0C1 that I have been tracking. Chris Puplava at Financial Sense provided additional charts.
Thanks Chris and "MC".
WMALT
2007-0C1 pool has been the "poster child" for what is happening with
Alt-A. Although it is just one pool, it is arguably indicative of the
rotten nature of liar loans in general.
Pool Stats
click on chart for sharper image
Inquiring minds may be asking about lines 7 and 8 on the above screen.
- Line 9 is the sum of lines 4, 5, 7, and 8 (anything 60 days late or greater plus all previous foreclosures and REOs)
- Line 10 is the sum of lines 5, 7, 8 (anything 90 days late or greater plus all previous foreclosures and REOs).
REOs and Delinquencies are Soaring
click on chart for sharper image
REOs right scale, 90+ delinquencies left scale
Foreclosures are Soaring
click on chart for sharper image
Foreclosures right scale, delinquencies left scale
Cesspool Data
The pool data just keeps getting uglier and uglier.
Month REO 60+
10-2007 0.00% 11.53%
11-2007 0.04% 13.30%
12-2007 0.64% 16.83%
01-2008 1.83% 19.32%
02-2008 3.56% 22.69%
03-2008 4.44% 24.86%
04-2008 6.21% 28.69%
05-2008 7.77% 30.41%
06-2008 10.48% 31.53%
07-2008 10.83% 32.75%
08-2008 11.89% 34.65%
Say GoodBye To Reporting On This Cesspool
This is the last update on this tragic cesspool. The reason can be found in the following chart of Rating Changes.
click on chart for sharper image
On
2008-08-25, at long last, the S&P finally saw fit to downgrade
tranches A1-A4 to BBB and A5 to B where they belonged many, many months
ago. Moody's still has not acted but most likely soon will.
"MC" writes "This is the widest split rating that I have ever seen".
Now
that there is more realistic ratings (at least from the S&P), I see
little reason to keep tracking this pool. However, I have a potential
new poster child in the on deck circle that we can look at.
Tranche List
click on chart for sharper image
Tranches
A1-A5 represent 92.5% of this pool, yet It took pool delinquencies in
excess of 34% and REOs approaching 12% to get the S&P to finally
act.
If this is the best Moody's and the S&P can do, they do
not belong in business. In my opinion, the only reason they can
possibly survive with rating performance so lousy is because of SEC
sponsorship.
I gladly repeat what I have said many times over the past year: It's Time To Break Up The Credit Rating Cartel.
Originally posted at: http://globaleconomicanalysis.blogspot.com/
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