Two years of Alt-A and ARM mortgages coming due.

By Daniel at 18 October, 2009, 10:10 pm

We are in the eye of the mortgage storm between those and the ending of the subprime fiasco.

However, we now also have people with good loans being laid off and defaulting. Why are we seeing some relief? Because Congress has authorized the GSE’s to become subprime lenders with 105% Loan to value loans and loans to people who end up with 60% debt service to income. The high default rate, according the Barney Frank was expected but the program is still “good policy.”

As some point this ends and the government can’t do these loans anymore because we have to borrow the money to keep it going.

- JP.