Posts tagged as:

pay option arm

$1 trillion in adjustable rate mortgages due to reset

by Moe Bedard

“The avoidable scenario is interest rates start to go up over the next couple of years, and all of a sudden, millions of homeowners who are stuck in adjustable rate mortgages and haven’t been able to refinance out of them become sitting ducks for big payment increases,” McBride said. “And then here we go again. [...]

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Option ARM Defaults Expected to Surge 25%

by Moe Bedard

Twelve-month default rate expectations on certain U.S. RMBS collateral have doubled since the previous quarterly survey, with U.S. 2007 Alt-A pay option ARM RMBS collateral default rate predictions rising to 25% from 12% polled in Q3.

For the same vintage, U.S. prime fixed-rate collateral default forecasts rose to 5.75% from 4.00%; U.S. prime adjustable-rate collateral default [...]

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It’s Not All Subprime. Pay Option ARM’s – California’s Billion Pound Gorilla

by Moe Bedard

By Moe Bedard
Let’s get something straight. Subprime loans are not the only thing that we need to worry about in this housing and mortgage crisis. It’s the hidden mortgage creatures in the “adjustable rate forest of the unknown” that are watching and waiting as they mature into full grown animals that we need to [...]

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