Artful Dodger: first, i believe that points are a one time thing determined at closing, its only the interest that will change, and if there are people defaulting on arms right now, I would have to assume its nothing to do with interest rates, since those are way down, but the fact that these people have either lost their income or they really couldnt afford the loans no matter the rates?

Artful Dodger: Well, like vikes said, arms arent really disigned for people who are going to keep them for a long period of time, but people were stupid, and people who could not afford and should not have been buying were buying anyway because they got false hope from temporary low interest rates.

Also again, there were people like me, who can afford to purchase, but am self employed and had at the time a poor credit history,these sub primes were perfect choices, and I knew going in that i had 2 years to refinance or i would get pounded, and I did that... but with your regulations, no bank would have ever even considered giving me a loan, and now my credit is so good, they beg me to take out more!