According to SBA Administrator Maria Contreras-Sweet, the program, "can help refinance debt from adjustable-rate loans
with significant savings to borrowers.
Capital One provided adjustable-rate loans
totaling $28 million to refinance two suburban New York shopping centers--Selden Plaza, a 229,000 s/f retail center with office space in Selden, New York, and Towne Center, a 43,000 s/f center in Glen Cove, New York.
First Choice Loan Services offers Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans, as well as jumbo loans, fixed-rate and adjustable-rate loans
and refinancing programs.
The community was hard-hit by the subprime mortgage crisis, triggered when adjustable-rate loans
began to reset at substantially higher rates.
Last year, most borrowers losing their homes were on sub-prime adjustable-rate loans
Instead, the Bush administration hopes that it can help many of the two million homeowners who took out adjustable-rate loans
with payments due to move sharply higher soon by offering some of them a five-year mortgage-rate freeze.
Prime, adjustable-rate loans
have higher delinquency rates than prime, fixed-rate mortgages and currently average 0.
Noted the Bloomberg News service on April 25: "Mortgages entering foreclosure jumped 72 percent during the first quarter from a year earlier, as higher interest rates increased monthly payments and strained the budgets of homeowners with adjustable-rate loans
by mortgagors who claim to have been overcharged on their adjustable-rate loans
As of the statistical cut-off date, the collateral pool consists of 794 adjustable-rate loans
and totals $420,163,912.
The delinquency rate for prime adjustable-rate loans
dropped to 10.
Foreclosure activity in California and other Western housing markets is on the increase in part because high-risk adjustable-rate loans
are beginning to reset to fully amortized payment schedules, a property tracker said Monday.