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Paulson: home-loan defaults could rise in 2008

posted 849 weeks ago on BloggingStocks

Filed under: Bad news, Citigroup Inc. (C), Bank of America (BAC), Federal Natl Mtge (FNM), Wachovia Corp (WB), Housing, Federal ReserveU.S. Treasury Secretary Henry Paulson is on the wires again, this time predicting that the number of potential home-loan defaults "will be significantly bigger" in 2008 than in 2007. In an interview with The Wall Street Journal (subscription required), Paulson said, "The nature of the problem will be significantly bigger next year because 2006 (mortgages) had lower underwriting standards, no amortization, and no down payments. He added that "We'll watch carefully mortgages that will be reset."Home prices fallPaulson's comments came before the National Association of Realtors announced that home prices had fallen in 51 of 150 U.S. me

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