Defaults on securitized subprime mortgage loans are accelerating and hit a new high of 21.3% in November, up 188 basis points from the level of the previous month, according to a report by Friedman Billings Ramsey Investment Management. The default rate on these nonagency loans has accelerated "briskly" since August, according to the Structured Finance Insights report, which indicates that the default rate on subprime mortgages has doubled since November 2006. FBRIM managing director Michael Youngblood attributes the rapidly deteriorating performance to falling house prices and weakening labor market conditions that are "characteristic" of a recession. The default rate on alternative-A loans rose 31 bps to 5.7% in November, up from 1.4% in November 2006. Meanwhile, the foreclosure rate on subprime mortgages stood at 8.6% in November and at 2.7% on alt-A mortgages.

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