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9.23.2009

More pressure on foreclosures from recasting ARMs

From CalculatedRisk.com:

Of the $189 billion securitized Option ARM loans outstanding, 88% have yet to experience a recast event ... Of these loans that have not yet recast, 94% have utilized the minimum monthly payment to allow their loans to negatively amortize.
And:
Resets are not a problem with low interest rates. The potential problems are from loan recasts.

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