Bad assets climb at Downey Financial

``Downey Financial’s nonperforming assets, that’s mostly delinquent loans and foreclosed real estate, climbed to 9.14% of total assets in January. In January 2007, nonpeforming assets were just 0.78%...2.05% of NPA were option ARM refinances — so total sour loans and repossessed real estate was really 3.72% of assets.'' -- I guess the argument here is that option ARM refinances are good, so those loans must be good? Guess that depends on how far into the affordability range those loans were re-fied.