Center For Responsible Lending - A Resource For Predatory Lending Opponents

Mortgage Lending

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Adjustable Rate & Non-Traditional Mortgages

Risky Loans Undermine Homeownership

"Exploding" ARMs, payment option ARMs and interest-only mortgages... Subprime lenders are fueling their business by aggressively marketing these risky home loans without considering whether families can truly afford them. Earlier this year, 80% of subprime home loans had adjustable interest rates-increasing the chance of "payment shock" for homeowners. This year mortgage payments will increase on 41% of all subprime loans, and foreclosures are surging in many areas. Find out more about how these high-risk subprime loans are undermining the benefits of homeownership.

Visit our glossary to read definitions of these terms:

Exploding ARM
Interest-Only Mortgage
Payment Option ARM
Payment Shock

Publications, Testimony & Comments

TITLE	DATE
Brief: Shopping for a Mortgage? Do Your Homework First	8/18/2005
Testimony: Calculated Risk: Assessing Non-Traditional Mortgage Products	9/20/2006
Comment: Home Ownership and Equity Protection Act Hearings	8/15/2006
Comment: Proposed Interagency Guidance on Nontraditional Mortgages	3/29/2006