Alt-A mortgage loans made in 2006 are going bad at more than four times the rate as similar loans made in 2004, analysts at Standard & Poor's said Tuesday. Alt-A loans are offered to home buyers who don't have perfect credit, but who are considered less of a risk than subprime borrowers. After 14 months of seasoning, 4.21 percent of Alt-A loans securitized and sold on Wall Street in 2006 are 90 days or more delinquent, or have been foreclosed. That compares with 1.59 percent for 2005 vintage Alt-A loans, and .91 percent for the 2004 vintage with the same amount of seasoning, Standard & Poor's said, citing data from First American CoreLogic's LoanPerformance. Standard & Poor's attributed the higher rate of serious delinquencies in the 2006 vintage to a greater proportion of lo...
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