Protecting Homeowners and Sustaining Home Ownership

“The mortgage market has long been a source of strength in the U.S. economy, but it is facing significant challenges, especially in the subprime segment that serves consumers who have shorter or weaker credit records.  As of November, the most recent month for which data are available, about 20 percent of subprime adjustable-rate mortgages (ARMs) were ninety or more days delinquent, twice the level one year earlier.  More than 171,000 foreclosures were started on these mortgages in the third quarter, up 36 percent from the previous quarter.  The significance of the problems with subprime loan performance is evident in the unusually high rate of defaults within a few months of loan origination, known as early payment defaults.  In November, nearly 7 percent of subprime ARMs originated in the previous six months were already ninety or more days delinquent, twice the rate of the year before and nearly four times the rate two years earlier.3

These problems have many causes, but the role of abusive lending practices is of particular concern.  Such practices have led many people into homeownership that they cannot sustain, hurting their families as well as their neighbors and communities.  Practices that have hurt consumers have also undermined the confidence of investors and contributed to a virtual shutdown of the subprime market.  As a result, it is difficult for many borrowers, especially those with shorter or weaker credit records, to obtain home loans.”

Governor Randall S. Kroszner
At the American Securitization Forum 2008 Conference, Las Vegas, Nevada
February 4, 2008

Q: Do you have a subprime Adjustable Rate Mortgage? 

A: Obtain your Loan Modification by working with a Loan Modification Expert