Archive for the 'option arms' Category

Reversal of real estate fortune – How option ARMs went from low grade toxic mortgages to boon for home debtors and banks. Financial generosity of moral hazard.

Financially dreaming in California – 50 percent of California households with a mortgage cannot afford the home they are living in. The lingering effects of Alt-A mortgages and negative equity.

Revisiting option ARM data – Bank of America, Wells Fargo, and JP Morgan still have over $160 billion in option ARM loans outstanding. Over 250,000 option ARMs in California still active.

Countrywide and Pay Option ARMs on trial – The most toxic mortgage ever invented by mankind is now under trial by the SEC with Countrywide.

5 reasons why the California real estate market will weaken from August to December of 2010: California budget delay, inventory growth, and three other important factors.

Where did the option ARMs go? Cheaper to pay modified loan than paying market rents. Subsidizing the housing market through shadow finance. Interest only payment 10 percent cheaper than market rents.

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