The problem is that HC hasn't quantified the magnitude of the issue.  They've basically said "It's all ok ... trust us"
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These loans were originated in 2014.  Given the state of the housing market none should have any collectability issues as they have all built additional equity since they were originated.  Yet HC has not provided any analysis in their press release to give their investors comfort.  Either incompetence or they are unable to do so .. which is very scary for an investor.