Notice the amount of subprime loans that are adjusting over the next two years. The first adjustment is 2% above their current rate. And up to 2% every 6 months until the cap of 9.95% is reached.
Having trouble driving volume and qualifying people. The industry pushes and the client demands very aggressive mortgages that could well be a ticking time bomb for millions of families.
Here you can see the hot areas of the country were fueled by the most dangerous loan products. How else would people be able to chase inflated home values and take on enormous mortgages if not for creative financing? Afterall, average middle class income is rising around 3% a year. Yet housing rose 20%+ in most of these areas over the last five years.