Chart 19
Interest rate resets for recently underwritten ARMs may not represent a systemic economic or banking risk
Pie Chart Original balance of ARMs originated in 2004 and 2005 Other Mortgages Outstanding
Mortgages Outstanding, December 31, 2005 ($ Billions) 1,888 6,772
     
Wedge of 1st pie chart Expected net loss based on effects of interest rate resets Expected non-loss amount
Original balance of ARMs originated in 2004 and 2005 ($ Billions) 110
1778
Source: "Mortgage Payment Resets: The Rumor and the Reality," Christopher L. Cagan, First American Real Estate Solutions, February 8, 2006, Federal Reserve