OK, I had a break and re-read the posts. powayseller posted about a NY Times article on ARMs by giving her post the title “1,460,000 ARM defaults expected.”
NY Times reported that “According to Christopher Cagan, an analyst with First American Real Estate Solutions, a housing consultancy in Santa Ana, Calif., about 19 percent of the 7.7 million ARM’s taken out in 2004 and 2005 are at risk of defaulting.”
Posters then ganged-up on her because they felt that of the 1.46M ARMs that were “at risk” certainly not all will default. Posters had issues with powayseller’s use of the word “expected.”
Well, if the CRL turns out to be right, then “2.2
million borrowers will lose their homes.” Quite a number!
I’m willing to let time be the judge but that 2.2 million number might turn out to be low.
