Did the Media Get the Story Wrong?

Some more nuggets from Countrywide Financial’s three hour long conference call with investors yesterday. The company says the recent spike in loan losses is not—as widely expected—due to adjustable rate mortgages resetting at rates too high for borrowers to pay. Company execs said the soaring rates of missed payments by borrowers are due to the typical reasons borrowers default—some kind of change in income, due to job loss, death or disability.

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