It's difficult to accurately predict something that has never happened. Prime ARM delinquencies shot up to 10% in 2008 and eventually to nearly 20%. Subprime ARMs shot up to over 40% at their peak. Prior to that subprime ARMS delinquencies peaked at just over 10% at their worse.
The borrowers were different so there was really no precedent, but just a cursory review of historical data would make what we experienced highly unlikely.
The borrowers were different so there was really no precedent, but just a cursory review of historical data would make what we experienced highly unlikely.
[0] https://en.wikipedia.org/wiki/Subprime_mortgage_crisis#/medi...