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Most Borrowers with Negative Equity Have ARMs
Most underwater borrowers have ARMs, according to new research by First American CoreLogic. And analysts at Amherst Securities Group warn that negative equity is a much more significant predictor of defaults than unemployment. As of the third quarter of 2009, First American CoreLogic found that most borrowers with negative equity have ARMs originated between 2005 and 2008. The borrowers...
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