Posts Tagged ‘option arms’

Wells Fargo’s Option ARM Problem Is Not That Bad

Via Calculated Risk, here is a post from the Healdsburg Housing Bubble which goes into some detail on the subject of Option ARMs and those in particular owned by Wells Fargo. I’ve been trying to make the point for some time that the Wells’ Option ARMs that it inherited in the purchase of Wachovia (Wachovia […]

Option ARMS Now Performing Worse Than Subprime

Here’s a sign of changing times — not necessarily for the better. The WSJ reports that Option ARMs are now performing worse than subprime. From the WSJ article: For the third straight month, option adjustable-rate mortgages are generating proportionally more delinquencies and foreclosures than subprime mortgages, the scourge of the U.S. Option ARMs were typically […]

Why Option ARMs Are Different

Megan McCardle and Ryan Avent have posts up about the coming recast of option ARM mortgages. Both contend that the issue isn’t the payment shock but some other factor or combination of factors that might make borrowers with option ARMs default. Here is Ryan’s analysis: Since the housing bust began, people have approached the problem […]

Option ARMs Get Some Breathing Room

It looks like the day of reckoning for Option ARMs has been pushed out. Business Week cites a Credit Suisse study that says the wave of resets for Option ARMs which had been forecast to begin this year and accelerate through 2010 has probably been delayed by about a year. The reason? Low interest rates. […]

Alt-A Loans Continue To Spiral Down

I haul out this chart every couple months. It seems there is always something that makes it relevant again. Today it’s a report from Fitch Ratings that says it expects losses on Alt-A loans to far exceed its earlier downgraded assessment. As you look at the Fitch commentary keep in mind that they include both Alt-A […]