Product Details
Option ARMs are facing increased scrutiny from regulators who warn that the mortgages are “ticking time bombs.” California Attorney General Edmund Brown and the House Oversight and Government Reform Committee recently sent separate letters to option ARM servicers in an effort to increase loss mitigation on the mortgages.
Find out how big a problem option ARM resets are likely to be and what should be done with these loans at a new IMF audio conference. Today increased charges of unfair and deceptive trade practices are threatening lenders, with claims on the rise, and more than 40 option ARM lawsuits pending.
Analysts at FBR Capital Markets estimate that $500 billion in option ARMs are outstanding, with roughly $150 billion expected to reset in the next two years. Few option ARMs have been modified and now servicers are being asked to provide detailed plans of action. According to analysts at Deutsche Bank, nearly 40% of outstanding option ARMs are 60+ days delinquent, and more than 77 percent of option ARMs have negative equity.
Is HAMP appropriate for negative equity loans? Or is restoring equity through a refinance the best way to assist homeowners? Join your colleagues at this event to get answers to these questions and more.
These Experts Will Share Their Insights and Answer Your Questions:
- Laurie Goodman, Senior Managing Director, Amherst Securities
- Paul Miller, Lead Analyst, FBR Capital Markets
- Jennifer Woodbury, Senior Pricing Analyst, Standard & Poor’s
- Terry Couto, Partner, Newbold Advisors
- Guy Cecala, Publisher, Inside Mortgage Finance (moderator)
Topics for This Live 90-minute Session Include:
- The scope of the option ARM problem.
- Is the HAMP program a suitable fix for some option ARMs?
- The effect that continued low interest rates would have on losses.
- Best practices in servicing option ARMs.
- The basis for claims of unfair and deceptive trade practices.
- Refinancing alternatives for option-ARM borrowers.
- Typical repayment shocks.
- Loan mod approaches: term extension, conversion to interest-only loans and reduced interest rates—what about principal forebearance?
- How detailed must the plans to help borrowers be that servicers lay out for the government.
- Investor issues and expectations with option ARMs.
- Conference attendance for you and your entire team around your speakerphone;
- A very useful resource—the conference manual—which includes a program outline, speaker bios and supplemental materials, plus key articles on the topic from the pages of Inside Mortgage Finance and our other newsletters;
- A full transcript, emailed to you when you take our post-conference survey; and
- The opportunity to connect with any or all of the speakers anonymously during the audience Q&A session—a favorite part of these events.
Cancel before 5:00 pm ET 12/14/09 for full refund less $25 fee.
You will receive an e-mail confirmation shortly after you complete the registration. You may also contact us at (301) 951-1240.