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Home » Store » Taxable » Economy Could Be the Key to Option ARM

Economy Could Be the Key to Option ARM

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Taxable

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Lenders are touting relatively strong credit profiles to help assuage investor angst about option ARM products. But ultimately, the performance of those products could hinge on what happens in the overall economy. Option ARMs have been at the center of an ongoing debate over the risks associated with nontraditional mortgage products. Because of the potential for negative amortization and higher losses down the road, the products have met with some skittishness from investors while…
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