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  • Hybrid Loan Time Bomb (Do you have an ARM mortgage?)

    01/04/2006 8:46:59 AM PST · by Travis McGee · 91 replies · 2,734+ views
    321gold ^ | January 4, 2006 | Mike Shedlock
    The HeraldTribune is reporting the clock is winding down on the Hybrid Loan and Sub-Prime mortgage time bombs. Starting in 2006 and accelerating into 2007, as much as $2.5 trillion worth of the fancy mortgages called "hybrids" are coming to the end of the free-lunch part of the deal. Economists are still trying to put numbers on this reset factor, particularly when it comes to the riskiest home loans, referred to as "sub-prime." "We don't have enough data to know how big a problem this will be," said David Berson, chief economist at Fannie Mae, the nation's largest mortgage packager....