You may want to clarify if you’re talking dafault = NOD or default = foreclosure.
As for how many, it’ll be interesting, of the interest only ARM segment, I think she’s probably right. Of the rest, she’s way off. Now, I know SD has about 80% ARM ratio in the last year or two, but it’s not clear how many are suicide loans.
From the Bank side, have a feeling the they will get creative with holding back on the actual NODs. I foresee refinancing to 40 years… A reroll to another interest only ARM with sub-prime interest rate pushing out the devil’s due another 3 years. Allowing the banks to restrucutre their responsibility on default.
