Resets Peaking on Subprime Loans

Washington Post (07/01/08) P. D1; Merle, Renae
First American CoreLogic reports that the number of subprime adjustable-rate loans resetting peaked at 7.61 percent of the loans outstanding in June, and more than 300,000 of the mortgages will adjust this summer. Data from the California research firm covers about 80 percent of the mortgage market. More homeowners are facing an increase in the payment on their subprime adjustable-rate mortgages; and borrowers who are unable to refinance due to declining home prices could be pushed into foreclosure, which is already at a record level. "We may not see the impact in foreclosures until the middle of 2009," says Mark Fleming, chief economist for CoreLogic.