Take Two®

News and culture through the lens of Southern California. Hosted by A Martínez

More homeowners turning to adjustable-rate mortgages

by Take Two®

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The Countrywide Banking and Home Loans office in Glendale, Calif., in an April 2007 photo. Damian Dovarganes/AP

More and more Americans are taking up ARMs, or adjustable rate mortgages.

ARMS nearly disappeared after the housing crisis of 2008, in part because they made up a huge bulk of the subprime loans that eventually floundered. But in November, more than a tenth of new mortgages in Southern California had an ARM, double the amount compared to a year earlier.

For a look at whether that's a troubling sign is Raphael Bostic, professor of public policy at USC and a former assistant secretary at the US Department of Housing and Urban Development.

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