by Tanta on 4/12/2007 12:39:00 PM
Thursday, April 12, 2007
Fannie Mae's newest Economic and Mortgage Market Developments report (thanks, Lurker!) has some interesting charts on projected ARM resets for 2007.
First, which ARMs are we talking about? Subprime and Alt-A appear to be the clear winners on volume.
Second, how have borrowers in recent vintages responded to imminent rate resets? By refinancing, of course.
If you are like me, you might be wondering how that big chunk of loans with a FICO over 700 and a CLTV of 80% or less found its way into a subprime security.