Despite the immense popularity of fixed-rate mortgages in an environment of once-in-a-lifetime low interest rates, adjustable-rate mortgages still hold a significant chunk of the mortgage marketplace. In 2011, ARMs accounted for 19 percent of banks’ total loan originations, an American Bankers Association 2012 report on real estate lending showed. Last year’s ABA survey showed that ARM products are still being actively marketed by lenders even though the fixed-rate products dominated the mortgage marketplace. ARM lending is extremely popular with community banks, which hold such loans in...