Seriously, when are we going to hear more in the MSM about liar's loans and option ARMs?
Because it's just so damn obvious what's coming next...
Maybe someone will ask Angelo today about these neutron bombs when he's under oath. Or maybe not. I'm not sure we can handle the truth..
Countrywide's Risky Mortagages May Be Ballooning Out Of Control
As of the end of December, Countrywide had nearly $29 billion in pay-option loans, with about $26 billion of the total having grown beyond their original loan amount, the company said in a filing late Friday with the Securities and Exchange Commission.
"Our borrowers' ability to defer portions of the interest accruing on their loans may expose us to increased credit risk," the company said. It added that its risk could be greater because the amount of deferred interest on pay-option loans was on the upswing.
The Associated Press says that the number of homeowners missing their interest-only payments is still increasing, and a staggering 81% of borrowers with these risky loans provided little or no documentation of their income.
As of the end of December, 71 percent of borrowers with pay-option loans were electing to make less than full interest payments.