John Wake

Is This (Finally) the Bottom? Part III

bonderman, that Ritholtz is misleading and needs to be updated. Many of those Option Adjustable Rate loans that the graph shows as resetting in 2010 and 2011 have already been foreclosed on. So the graph underestimates the problem in 2008 and 2009 and overestimates it in 2010 and 2011.

If an Option Adjustable Rate borrower only makes the minimum payment, and many do, the loan will automatically reset long before the scheduled reset date.