When JPMorgan (JPM) announced earnings last week, it said the one category in its portfolio that was slightly worse than expectations were the loans made to prime borrowers.
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Now Fannie and Freddie, in a letter to Sen. Chris Dodd, say they're seeing the same thing -- a surge in prime defaults.
Calculated Risk: The tables show that the number of prime 60 days+ delinquent rose to 743,686 in January, from 497,131 in December. This is an increase from 1.93% in December to 2.89% in January.
The number of non-prime 60 day+ delinquent loans increased too; from 428,705 in December to 485,365 in January. But the foreclosure problem is now mostly a prime problem!
