It wasn't long ago, 2005 or maybe 2006, when I was sitting in a GSE Leadership Conference with senior management and one of the COO's challenged his leadership group. He asked, "Are we really the best at risk management, or are we really just good at risk avoidance?" That COO's statement was eerily prophetic. Especially when you consider the fact that prime 30 yr fixed loan product is the fastest growing category of seriously delinquent mortgages. With residential delinquency and foreclosure rates hovering around 14 percent, the U.S. housing market finds itself in yet another sticky situation. On the MBA's recent First Quarter Delinquency Survey conference call, it was disclosed that 4.3 million loans are now 90 days delinquent. Compared to the first quarter in
