The thing that I’m looking at is subprime is only a qaurter of the market. In SD, 60%- 80% of the borrowers in the last two years used some form of ARMs, whether, normal, exploding or exotic (option).
Will the 35-55% of the market that isn’t subprime but potentially used subprimed styled ARM loans have the same or close to the same behavior as the subprime? An ARM isn’t an ARM, what percentage of the 80% of ARMs were exotics/options? I’d guess the majority if not almost universal.
