Option ARM Modifications Find Little Success, Resets Still Loom Despite Lessons Learned
December 17, 2009
Industry experts can easily identify the problems with option ARMs that were made from 2004 to 2008, but modifying these loans, many of which are in default or underwater, is more difficult to do. An estimated $500 billion option ARMs are outstanding, and about $150 billion of them are due to reset over the next two years. Most were made by lenders as the mortgage market bubble reached its...