The losses were sufficient to wipe out not only the bonds Michael Burry had bet against but also a lot of the more highly rated ones in the same tower. That the panic inside Wall Street firms had begun before June 25 (2007) suggested to Michael Burry mainly that the Wall Street firms might be working with inside information about the remittance data. "The dealers often owned [mortgage] servicers," he wrote, "and might have been able to get an inside track on the deterioration in the numbers." Pg 197 - The Big Short by Michael Lewis
This is from a part of the book where Burry is following OOMLT 2005-3 a pool of OptionOne subprime and by end of 2007 more than a third of this pool of borrowers had defaulted - 37.7%. One of the things that Burry, Lewis' main character mentions contrary to media spin is that these CDO deals started to go bad prior to rate reset dates.