The Second Wave of Monetary System Failure - Option ARMs and Alt-A loans
Option ARMs and Alt-A loans this will be worse than the sub prime mortgage crisis. Ordinary ARM loans, which are riskier than fixed-rate loans, apparently aren’t risky enough for many borrowers. The MBA says that their market share fell from 46% in the second half of 2004 to 36% in the first half of...
Option ARMs Threaten Housing Rebound as Resets Peak
June 11 (Bloomberg) — Shirley Breitmaier’s mortgage payment started out at $98 when she refinanced her three-bedroom home in Galt, California, in 2007. The 73-year-old widow may see it jump to $3,500 a month in two years. Breitmaier took out a payment-option adjustable rate mortgage, a loan popular...