A villain of the housing crash makes a comeback
The housing market crash, which started in 2007 and kicked off the Great Recession, blighted both the financial and real estate industries. Among the many participants whose reputations were ruined, few took more damage than the mortgage brokers who sold adjustable-rate mortgages. But nine years after their fall from grace into near oblivion, ARMs are making a slow, but steady, comeback.
The housing market crash, which started in 2007 and kicked off the Great Recession, blighted both the financial and real estate industries. Among the many participants whose reputations were ruined, few took more damage than the mortgage brokers who sold adjustable-rate mortgages.
But nine years after their fall from grace into near oblivion, ARMs are making a slow, but steady, comeback.
"ARMs carry the stigma of being the villains of the housing crash," said CEO Mat Ishbia of United Wholesale Mortgage, a national lending institution. "But they're still around and could be the right product for a lot of borrowers."
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