ArnoldCountry

Alt-A Mortgage Delinquencies Are also Rising

Wait until the serious litigation starts with these products. Lawyers are just down getting their arms around the smoke and mirrors of these arms! It was completely unreasonable to expect that people would be ok the payment shock of taking their payment from $1,500.00 per month to $3,000.00 per month in one month when the loans hit their cap. The securities will continue to perform poorly and the litigation will continue to rise from the back end by investors and on the front end from borrowers.

Foreclosures Prove Loan Modification Isn't Working

As much as it paints a gloomy picture, this article is right on. The Option ARM modifications give a 2% reduction in margin for a while and the borrower still has to make the higher payment with loan amounts exceeding 100% LTV. Makes no sense. Couple that with a very painful process as described above, and people just give up. Its just about showing regulators and legislators statistics that they are providing modifications to "help". Meanwhile... the housing market continues it spiral freefall to the ground. Corrections are always painful, this one will incur many dead patients.