The October 2019 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 Failure (that is, Default) Rates. Please interpret the chart and what it implies for investors in CMOs back in 2008 versus today?

3. The October 2019 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 Failure (that is, Default) Rates. Please interpret the chart and what it implies for investors in CMOs back in 2008 versus today? (10 points) Figure 1. Failure Rate by Fiscal Year Fallure Rate(s) 54 60 66 108 114 120 125 132 133 144 150 15 72 78 84 90 96 102 Months Since Origination - 0 2016 2011 - . 2018 - - 2012 2013 - 2014 2015 . . 2019 for this Bistration. The farrates the sum of Cumulative Claim Rate and Curative Active NOTES. A loan that is in foreclosure processing or has gone to claim is deemed to be a failure Foreclosure Rae duided by Total Loans SOURCE: US Department of HUC FHA, November 2010