Business Times: More loan defaults next year: Paulson November 23, 2007
Posted by catherinefong63 in BusinessTimes, New York.trackback
November 22, 2007
More loan defaults next year: Paulson
(TOKYO) The number of potential US home-loan defaults ‘will be
significantly bigger’ in 2008 than in 2007, the Wall Street
Journal’s online edition has reported.
‘The nature of the problem will be significantly bigger next year
because 2006 (mortgages) had lower underwriting standards, no
amortisation, and no downpayments,’ said US Treasury Secretary Henry
Paulson in an interview with the Wall Street Journal on Tuesday,
according to an excerpt on the newspaper’s website.
The newspaper said Mr Paulson was pressing the mortgage-service
industry to help a broad range of borrowers become eligible for
better loans instead of dealing with mortgage problems on a case-by-
case basis.
Currency traders in Tokyo cited Mr Paulson’s comments as a factor in
the dollar’s fall to a two-year low of 108.89 yen on electronic
trading platform EBS yesterday, the lowest since September 2005.
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