The New Mortgage Dynamics and the Anatomy of a Pay Option ARM Borrower. 850,000 Option ARMs Still Outstanding and 40 Percent in Distress. 4 Reasons to Walk Away from your Option ARM.
It is hard to believe that 13 percent of all mortgages are either in foreclosure or some other form of distress. This can stem from a missed payment from an unexpected job loss or mounting pressure of servicing current debt. To a large degree the allure of the option ARM product came from the ability [...]
FDIC and the Bank Failures of First Federal Bank and Imperial Capital in California. Two Banks Brought Down by Option ARMs and Commercial Real Estate.
First Federal Bank of California failed on Friday because of a heavy over indulgence on risky option ARMs. Imperial Capital also failed on the same day because of an inability to raise capital and also mounting losses of commercial real estate loans. These two bank failures, two of the 140 in 2009, show that the [...]
San Francisco Shadow Inventory Larger than Regular MLS Data: How the Real Housing Inventory is Hidden from the Public.
Once upon a time in California, housing prices aligned with national prices. You don’t need to go back into the legends of the state because this was a time in the 1960s and early 1970s. At this point, housing in California started to disconnect from economic fundamentals. Many people forget that California had a housing [...]