Found via naked capitalism.
Summary
In this article, we argue that the housing overhang is not caused solely by the number of non-performing loans that exist in the market. The problem also includes the high rates at which re-performing loans are re-defaulting, along with the relatively high rates at which deeply underwater loans that have never been delinquent are going 2 payments behind for the first time. As a laboratory for this analysis, we look at each loan in the non-Agency universe a year ago, and examine its current status.
