So about 80% of these resets are subprime? Looks like the lower end will continue to get hammered. Of course the reset schedule doesn’t really tell you too much. Were these mostly for new purchases or were these re-fi’s on a home someone owned for 20 years in Detroit where they needed to take the equity out of their house to pay off some bills after getting laid off?
Personally I put very little faith in the accuracy of any charts from lending institutions. I sold a home I had an ARM on nearly a year ago and I still get mailers from lenders asking me to re-fi it even though it had been paid off and the reconveyance recorded. The loan was never close to resetting, but I kept getting these “notices” about how my payment was going to skyrocket. I finally called one lender and asked him where he was getting his info. from because it was wrong. He had no answer and said he was just a telemarketer doing his job. That’s the current state of mortgage brokering. Pay some kid $8/hour to try to hook some fish.
