Prime Option ARMS set to reach peak reset (and failure?) rate in 2012. Hold on for a ride.

[Deleted member 4644]

http://www.businessinsider.com...tgage-explosion-2009-5

If the analysis of this article is correct, we are in deep, deep trouble.

 

[LegendKiller]

Originally posted by: Deleted member 4644
http://www.businessinsider.com...tgage-explosion-2009-5

If the analysis of this article is correct, we are in deep, deep trouble.

AFAIK, the Credit Suisse table doesn't take into account the massive amount of refis going on right now due to the rates being so low. Not to mention, most, if not all, of the interest capitalization maximum has already occurred for a large portion of that portfolio.

 

[BoomerD]

Did you just wake up? We've been discussing this for weeks...here and in P&N.

 

[DaveSimmons]

What the peak reset might look like:
http://www.youtube.com/watch?v=WhF7dQl4Ico

The nice thing is that the rates will reset to 0%, just like the Mayan calendar.

Rolloverpocalypse?