When JPMorgan (JPM) announced earnings last week, it said the one category in its portfolio that was slightly worse than expectations were the loans made to prime borrowers.
Now Fannie and Freddie, in a letter to Sen. Chris Dodd, say they’re seeing the same thing — a surge in prime defaults.
Calculated Risk: The tables show that the number of prime 60 days+ delinquent rose to 743,686 in January, from 497,131 in December. This is an increase from 1.93% in December to 2.89% in January.
The number of non-prime 60 day+ delinquent loans increased too; from 428,705 in December to 485,365 in January. But the foreclosure problem is now mostly a prime problem!