Hey, can someone verify what is included in each of these categories?
The bottom row is Alt-A ARMs. That would be Stated Income, low-doc A-credit ARMs, straights ARMs, nothing fancy. Does that include high LTV?
The next bottom is Sub-prime. We’ve heard loads. Low-credit, high-LTV, stated income, etc.
Then red. Prime ARMs. looking to be predominately 3 year ARMs. Straight ARMs, no options, no neg-am. Etc. normal LTV, DTI and documentation. correct?
Then white. Agency ARM. Not sure, is this VA, FHA funded ARM loans?
the light blue. Option ARMs. These are the Neg-AM, option ARM loans. Targeted resets on paper starting in 5 years so float activites in years 3,4,5. I say on paper, because if the neg-AM has been used, that date gets pulled in the on the equity cap, typically fires on a minimum payment user around month 29.
If the Neg-Am trips an early reset for the majority of people with the Option ARM loans, that may move the light blue section forward two years to begin this fall/winter. Right on top of the sub-prime peak. Am I think about that wrong?
The last is unsecuritized ARMs. Are these the ARMs that banks kept for themselves?
