It sure will be interesting to see what happens with those prime option-ARM’s. I didnt see many of them butI’m just one guy. I have no idea how many are out there and how many that were were refinaced away in the last year. A couple years ago, I expected the problems in upper middle tier to hit between 2010 and 2012 as much of the loans I saw as problematic were 5/1 ARM’s written in between 2010 and 2012. I underestimated the resolve of the Fed to get/keep rates as low as they are and suspect they will stay there for quite some time to come. Will be interesting to see how big the problem actually manifests itself to be.
FWIW, the highlighted text above is a quote from Mark Hanson aka Mr Mortgage who has been wrong all year.
