t 7. The September 2018 FHA Single Family Loan Performance Trends report issued by the U.S. Department of Housing and Urban Development included the chart seen below about Mortgage ailure (that is, Default) Rates. Please interpret the chart for us and what it implies for investors in CMOs back in 2007 versus today? (15 points) Figure 2.Failure Rate by Fiscal Year 30 25 2008 20 15 10 2009-2 2010 2011 2012 2013 30 36 42 48 54 60 66 72 78 84 90 96 102 108 114 120 126 132 138 14 150 0 6 12 18 24 Months Since Origination -2011 2009-12009-22010 2016 2008 2014 2007 2006 -2017 -2015 2013 -2012 through March in 2009-1 and tailure' for this illustration. The failure rate is the sum of Cumulatve iginations from Agril through Segtember in NOTES The FY 2009 cohort is separated into hwo parts, representing loan originations from October 2009-2. A loan that is in foreclosure processing or has gone to claim is deemed to be ia Active Foreclosure Rate divided by Total Loans. SOURCE U.S. Department of HUDIFHA October 2018 oan or originations from O t 7. The September 2018 FHA Single Family Loan Performance Trends report issued by the U.S. Department of Housing and Urban Development included the chart seen below about Mortgage ailure (that is, Default) Rates. Please interpret the chart for us and what it implies for investors in CMOs back in 2007 versus today? (15 points) Figure 2.Failure Rate by Fiscal Year 30 25 2008 20 15 10 2009-2 2010 2011 2012 2013 30 36 42 48 54 60 66 72 78 84 90 96 102 108 114 120 126 132 138 14 150 0 6 12 18 24 Months Since Origination -2011 2009-12009-22010 2016 2008 2014 2007 2006 -2017 -2015 2013 -2012 through March in 2009-1 and tailure' for this illustration. The failure rate is the sum of Cumulatve iginations from Agril through Segtember in NOTES The FY 2009 cohort is separated into hwo parts, representing loan originations from October 2009-2. A loan that is in foreclosure processing or has gone to claim is deemed to be ia Active Foreclosure Rate divided by Total Loans. SOURCE U.S. Department of HUDIFHA October 2018 oan or originations from O