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Toxic Loans: The Sequel

While some real estate experts say the market is nearing a bottom, others are warning about a new wave of toxic mortgages that are set to go bad -- Payment Option Adjustable Rate Mortgages, or Option ARMs. As NBR's Stephanie Dhue reports, these loans are recipes for foreclosures in the current market.



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Related NBR Stories & Links

• 04-04-07: "Money File" - Secret Sub-Prime Mortgages
• 12-18-06: The Struggle To Save Homeowners From Out of Control "Arms"
• 09-20-06: Exotic Mortgages are Turning the American Dream into a Nightmare
• 05-31-06: "Money File" - Menacing Mortgages

External Links/Articles*

• Federal Reserve
  The Federal Reserve is the central bank of the United States. This links to an informative brochure published by the Fed titled, "Interest-Only Mortgage Payments and Payment-Option ARMs: Are They for You?"
• First American CoreLogic
  First American CoreLogic is a firm that gathers and analyzes real estate data. The firm's data is used in Stephanie Dhue's report. This links to First American's "Negative Equity Report" for December 31, 2008. The report offers "State-by-State Estimates for U.S. Single-Family Residential Properties." Registration is required to read the report.
• Government Accountability Office (GAO) (PDF Document)
  The mission of the GAO "is to help improve the performance and assure the accountability of the federal government for the benefit of the American people." This links to a September 20, 2006 copy of U.S. Senate testimony about alternative mortgage products, including payment-option adjustable rate mortgages.
• RealtyTrac
  RealtyTrac is a housing marketplace "for homeowners, investors and real estate professionals." One of its main services is foreclosure listings. This links to an article published by RealtyTrac titled, "Option ARM Borrowers Running Out of Time."

*Clicking these external links will take you off the NBR web site on PBS.org. NBR has no affiliation with these sites.