My understanding is that the vast majority of NEG AM loans were not sliced and diced with the subprime ginsu knife.

Most are “portfolio” loans meaning that the lender kept them on their books along with the servicing rights.

In a 6% environment, some these loans were at 8%-9%+ representing a 35%-50% premium, AND the fact that there were accounting flaws which allowed them to “misplace” phantom income.

This may turn out to be the 500 year flood that people heard about, but didn’t think would occur in their lifetime.

I truly believe that we are witnessing history being made of a meltdown. It is going to affect the USA much worse than others.

Stocks trickle down slowly until they hit bottom. Houses will do the same.