Chris Whalen: Mortgage Defaults May Be Worse than 2008-2009… Goldmans Still Committed to the Strength in Equities Being a Bear Market Rally

Chris Whalen, Whalen Global Advisors Chairman and author of The Institutional Risk Analyst, recently spoke with Mortgage Media about the CARES Act stipulation that permits mortgage borrowers who’s mortgage is backed by the Fannie Mae, Freddie Mac, or Ginnie Mae to postpone mortgage payments for up to 12 months (mortgage forbearance). In a somewhat technical discussion of mortgage markets, Mr. Whalen notes that, in addition to government backed loans, regulators are pressuring private lenders to offer forbearance on non-government mortgages and even auto loans. He also fears that lending defaults to be substantially worse than in 2008 and 2009 and that, ultimately, investors and lenders will absorb the loss. Enjoy the discussion below.

 

 

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