I recently received an e-mail from the Vice President of a rather large mortgage company with what he characterised as "alarming statistics. I believe there is a huge opportunity in these numbers. Read on!
Over the next 2-years, ~$20 billion/month, or 100,000 sub-prime loans Arms will reset every month - that's 1.2 million loans each year.
Sub-prime products usually have arm caps of 3/1/6 with arm margins of at least 6%. So, the first adjustment rate will go up as much as 3%!
He asked in his e-mail "How are you positioning yourself to take advantage of this information?"
Great Question don't you think?
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