BG – Agreed One of the factors in recent years wrt ARMs was the abuse of no-doc loans. Not necessarily the other features of these.
BTW, I also had an interest-only ARM that originated in 2002. It is not one of the 450,000 performing loans you cite (No I didn’t default, I refinanced into a 30-yr fixed).
Of course, the most important feature of those performing loans that originated from 1988 to 2002 is that the owners are likely to have significant equity, even after the steep decline of the past couple of years.
