It would seem to me that a person that has a 950K mortgage and only makes 65K per year and barely making ends meet, (although he may have good credit at the time of original loan placement) would quickly become SUB-prime if his mortgage "resets" with a 45% increase in monthly debt service……
So what is a "sub Prime" loan really ?
If the terms and conditions of the ARM loan can be "Adjustable" then should the characterization of SUB prime be "Adjustable" too ?
Alt-A is taking losses now. (as we knew would happen)
Lets see how they pull a rabbit outta their asses on this one ! ……They are good, we'll see just how good soon
