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IPFS News Link • Housing

A villain of the housing crash makes a comeback

• cbsnews.com By Ed Leefeldt

Among the many participants whose reputations were ruined, few took more damage than the mortgage brokers who sold adjustable-rate mortgages. Known as ARMs, they became a four-letter word within the industry.

But nine years after their fall from grace into near oblivion, ARMs are making a slow, but steady, comeback. They're getting a boost from rising interest rates, which make them more attractive, better government regulations and, perhaps, more restraint from the mortgage brokers who sell them and are looking for redemption.

"ARMs carry the stigma of being the villains of the housing crash," said CEO Mat Ishbia of United Wholesale Mortgage, a national lending institution. "But they're still around and could be the right product for a lot of borrowers."


www.universityofreason.com/a/29887/KWADzukm