I’m not sure how big OptionArms were here in Minnesota, but they played a very big role in California, Florida and Arizona – basically, the foreclosure capitals of America.

Denninger at Market Ticker does an excellent job of taking apart the public comments of the Mortgage Bankers Association regarding the coming impact of OptionArm re-sets.

For an excellent, detailed analysis of the impact of OptionArm re-casts, check out this post from Healdsburg Housing Bubble.