Option ARMs

[AggroFish]

I've put many people in option arms and refinanced a bunch out. It's not a bad loan, but pushed on the wrong person for the wrong reasons, it'll cause a lot of problems.

There's a BIG majority of people that were, as you say, "duped" into a neg am loan not realizing that their payments went up. The problem is the brokers that max out the margin with a 3yr hard pre pays to make 4pts on the back. Meaning, fully indexed rates in the mid to high 8s, min payments at 1 - 1.5 percent, insane amounts being deferred + declining property values = recast central for those that went max LTV.

Problem isnt coming it's already here. I saw it coming earlier this year and when New Century went under, that was it...I was done.