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Wednesday, March 26, 2008 11:00 AM

WaMu Alt-A Pool Revisited

Mish Moved to MishTalk.Com Click to Visit.

About a month ago, in Evidence of "Walking Away" In WaMu Mortgage Pool, I wrote about a particular Washington Mutual (WM) Alt-A mortgage pool "affectionately" known as WMALT 2007-0C1 .

Many inquiring minds have been asking for an update of this pool. I am pleased to present a new screen shot of the same Alt-A pool. Once again, thanks go to "CS" for the screen shot.

New chart of WMALT 2007-0C1

click on chart for sharper image

The pool data just keeps getting uglier and uglier.

Month      REO     60+

10-2007 0.00% 11.53%
11-2007 0.04% 13.30%
12-2007 0.64% 16.83%
01-2008 1.83% 19.32%
02-2008 3.56% 22.69%
60 day delinquencies or greater has been rising at a nice steady pace of 2.5% to 3.5% or so every month since August 2007. The Real Estate Owned (REO) number is now a whopping 3.56% of the pool.

Inquiring minds may be asking about lines 7 and 8 as well as the GEO lines at the bottom of the screen shot.
  • Line 7 is the sum of lines 3 through 6 (anything 60 days late or greater plus all previous foreclosures and REOs)
  • Line 8 is the sum of lines 4 through 6 (anything 90 days late or greater plus all previous foreclosures and REOs).
  • The GEO lines (geographic distribution) show this pool is 48% California and 14% Florida.
Cesspool Bottom Line

22.69% of a pool that was 92.6% rated AAA is 60 days delinquent or worse. 3.56% of that pool is REO. That's an amazing performance for an AAA pool whose issue date was May, 2007. At the current rate of progression it would not be surprising to see 30% of this pool get to REO status.

Repeating what I said last month....

Washington Mutual was the underwriter. If you bought a slice of this cesspool from WaMu, are you going to buy their next offering?

Mike "Mish" Shedlock
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