Mortgage Early Payment Defaults Surge in 2008

"This [chart] is another perfect example of why banks need to get ahead of the coming Alt-A, Jumbo Prime and Prime Conventional implosions and suddenly are all endorsing massive mortgage modification initiatives. Remember, when much of what is represented below was originated, Subprime was already gone or significantly winding down therefore much of this increase is from higher paper grades. This also explains why the Subprime lenders such as Fremont and HR Block saw EPD’s drop substantially."