nicely the bundled money (CDO's) might desire to fulfill a standards, shall we are saying they might desire to fulfill the standards for (x) volume of time, if the default fee eats up the earning (interest won) is under the agreed volume the the unique lender desires to purchase back FORECLOSED sources that's going to become REO. creditors are no longer able to take part in refinancing by way of actual fact they now no longer very own the interior maximum loan yet with the standards they're compelled to buyback the interior maximum loan/sources purely after foreclosure. With all the status inventory, residential authentic sources isn't promoting for asking or what's owed. by means of having the properties the lender are having to pay costs (sources tax/mello-roos, utilities, association, secure practices, authentic sources agent). jointly as no one is making the interest money plus having to pay the extra costs. The creditors are taking a extensive hit on salary. Forcing the financial company/creditors to have super WRITE-DOWNS. So all the communicate now are the massive losses. inventory industry the banks/creditors are being hit stressful!!! i'm hoping this became effective and spoke back your question.