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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: shades who wrote (66882)	7/26/2006 9:02:49 AM
From: russwinter	Respond to of 110194

Some of the comments made on this CFC call were not inconsistent. I thought I heard them say at two places (in a marathon call where analysts threw them mostly soft tosses), the following: 1. in aggregate on all pay option ARMs, total negative amortization have only added about 1.5% to the initial balances 2. 70% of all pay option ARM debtors paid the minimum payment in the first year, and 50% in the second Did anybody else hear this? Just doesn't compute, as even if the minimum payment interest rate was as high as 5% in year two, the real rate adjusted on new resets would be 8% and that's for top prime borrowers.