War

Delaying the Inevitable Re-Default 

Fitch Ratings is joining a growing chorus of voices that say the recent refi deluge will not likely stave off an eventual mortgage re-default for the majority of takers. Auction companies HousingWire is speaking to for its July 2009 feature on the topic are predicting the same outcome. Fitch’s conclusion is outlined in a just-released report citing “information from servicers” as well as data from First American Loan Performance, which finds that re-defaults, 60 days or more, on U.S. residential mortgage-backed securities (RMBS) may hit 75% after 12 months.