More Option Arm Fun: What Me, Pay?

An eye-opening chart on outstanding option ARM loan principal by vintage year. Turns out that when people have an option not to pay, they don’t – and then the principal gets larger. Gosh, this mortgage stuff is tricky.

option-arms

[via FRB]

Related posts:

  1. Trading on Unusual Option Volume
  2. Option Backdating: Tech is the Worst Offender
  3. Apple’s Option Imbroglio: What Jobs Didn’t Know, and When He Didn’t Know It
  4. Wave of Option Repricing Coming?
  5. Map of Option ARM Misery