Subprime News Update: Prime Borrowers are Defaulting on Loans Too

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The problems plaguing the subprime lending industry seem to be seeping into the prime sector. A major lender reports that an alarming percentage of borrowers with good credit are defaulting on mortgage loans.

eFinance (, a news hub for real estate and mortgage markets, recently released a subprime news update detailing a three hour conference call with Wall Street analysts and Countrywide Financial Corp. CEO Angelo R. Mozilo.

Mozilo, who originally predicted an upswing in the housing market as early as 2008, is now projecting depressed conditions through 2009.

The new projection is largely the result of increased defaults in the subprime sector, as well as a rising number of defaults among prime borrowers. According to Mozilo, many of Countrywide's customers--both prime and subprime borrowers--are experiencing upsets like job loss and falling home values, and as a result, are having difficulty meeting payment obligations.

Christopher C. Brendler, an analyst with Stifel Nicolaus, an investment firm in St. Louis referred to the Countrywide situation as an "industrywide problem".

The full subprime news update, which includes more details of the conference call, default projections, and housing forecasts, can be viewed at

Other subprime updates can be found in the section dedicated to subprime mortgage news:

About is an online news hub dedicated to providing reliable information about real estate, mortgage financing, and property investment. The company currently focuses on publishing unbiased daily news stories that relate to the U.S. housing market.

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Ben Wilson
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