In a report released this morning, Citgroup Global Markets said that the number of RMBS delinquencies that eventually default resulting from Hurricane Sandy will mostly depend on how much damage will be covered by insurance.

Analysts said borrowers with property damage have to divert cash to make the necessary repairs while they wait for insurance payments to arrive. This will probably cause delinquencies to increase over the next few months, particularly for subprime borrowers who are on shakier footing financially.

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