I think he addressed the recasts in that the loans are not neg amortizing anymore to a large degree (or at all) even at minimum teaser rate based payments because the MTA is so low. First time I ever heard that and it surprised me. I find that hard to beleive also. I do beleive most of the OA’s that were going to go bad already have (i.e. 50% of the bad loans are gone already via sales, short sales and foreclosures) and that the OA time bomb is is overblown. The real issue is unemployment. The gov’t can kick the can with all sorts of assistance programs but none that I know of work unless you have an income.
