Rising Option ARM Defaults Could Threaten Market Recovery, New S&P Study Concludes
December 4, 2009
Though only a small portion of adjustable-rate mortgages with payment options originated during the recent housing boom have recast, concern is growing that further resets could quickly stifle the market that otherwise appeared to be on the mend, according to a new report by Standard & Poor’s. In the report, “Why We Expect Defaults for Option ARM Loans to Rise,” S&P credit analysts...