4.95% of all mortgages late last Quarter

Wow, that's a huge number. And this is in 4th quarter 2006. I'm sure it is worse this quarter. Those are not numbers that the banking industry can support easily. Unless we get a real fast rebound in home values - which won't happen across the country anytime soon - there will be a lot of blood on the books of banks. The banks will slow the foreclosure process down to a trickle if they can. Work out deals will be easily had. So that the banks can not take the actual losses, while waiting for an economic miracle. What happens when bankers fail to get their bonuses...?