ALT-A Mortgages vs Nonagency Mortgage Size

--Interest only option allows a borrower to pay only accrued interet --Negative Amortization option allows a borrower to pay less than the accrued interest and defer the deffered interest to the principal - known as Payment option ARM or Pick a Pays --nearly 50% of smaple ALT-A (2005 - 2007) has negative equity --(9-11)% delinquent of reminaing mortgage balance, (9-17)% of remaining mortgage in foreclosure --Creditsights estate the amount oustanding of AlT-A is similar to Subprime, $600 bil Nonagency Mortgage can be segmented into --Prime: Jumbo loans. around 3 tril --Alt-A: around 1.5 tril --Subprime: around 1.5 tril