Very Encouraging Report from Christopher Cagan, Ph.D of First American Real Estate Solutions: “Mortgage Payment Reset: The Rumor and the Reality” 

“… the study utilizes the extensive database and analytical resources of First American RES and its subsidiary LoanPerformance to classify market segments as relatively safe or vulnerable under the pressure of mortgage payment resets. The most vulnerable will be those who do not have substantial equity in their homes, but hold adjustable rate mortgages (ARMs) with low initial rates, often with interest-only and negative- amortization features.

The study concludes, however, that while individual families and firms that are involved with the riskiest loans may suffer, on a national basis the impact of mortgage payment reset and subsequent default will not significantly impact the economy, as it will result in approximately $110 billion in losses, or less than 1 percent of total U.S. mortgage lending annually.”(emphasis and italics added)

(see Chicago Tribune Article –  with content rom Interest.com and also this article from the Orlando Sentinal)  

This is truly refreshing since most of what you hear from a lot the “experts” is economic annhilation when it comes to the mortgage reset problem. The reality is, it isn’t as big a one, as predictied. The mortgage market and the American economy are strong and can absord this hit.