Tuesday, January 12, 2010

Option-ARM payment shock

Via Calculated Risk, a report by Amherst Securities which reaches more or less the same conclusions Credit Suisse did (and reported in March here and again in June here by yours truly).


The conclusions, more or less, are that while the first wave of mortgage defaults in the "Subprime" category has subsidized subsided in recent months, a second wave is about to hit the shores in the Option-ARM category as the payments on these mortgages are recast higher (in the 100% to 150% range).

2 comments:

  1. '...has subsidized in recent months,..' should perhaps be: '...has subsided in recent months,..'??

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