Syron, Chanos, Faber See Defaults Increasing in Loans to Risky Borrowers

(Bloomberg) -- The worst is yet to come in the
market for subprime loans as defaults increase and holders of
mortgage-backed bonds are forced to sell as prices fall, Freddie
Mac Chief Executive Officer Richard Syron and investors James
Chanos and Marc Faber said.

``Unfortunately I don't think we have hit bottom'' in
defaults, said Syron, whose company is the second-largest source
of money for home loans behind Fannie Mae, said in an interview
yesterday from McLean, Virginia. ``Things are going to get
worse.''


Read more at Bloomberg Stocks News