One issue, notes Ms. Thibos, is fixed-rate loans can be more profitable for lenders.
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He found that the availability of discounted variable-rate deals crowded out comparatively expensive longer-term fixed-rate loans.
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Variable-rate loans have lower initial rates than fixed-rate loans but can be more costly if interest rates rise.
The most widespread problem is mortgages that had special introductory or "teaser" rates that made them more attractive than traditional fixed-rate loans in the first place.
The NAR also has supported a Senate bill that would offer subprime borrowers an alternative by expanding availability of fixed-rate loans backed by the Federal Housing Administration.
Repaying debt has become more difficult in part because loan balances have grown and the interest rates on federal loans have increased as a result of a shift from variable-rate to fixed-rate loans.
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Dodd, who helped shepherd the bill through the Senate, says the companies are "fundamentally sound and strong, " noting that they hold excess capital and that their portfolios are primarily made up of healthy, 30-year fixed-rate loans.
The crisis is so grave, she argues, that most borrowers who are facing resets but still paying their dues should be given the chance by servicers to switch into fixed-rate loans at the starter rate for the full 30 years.
Most Britons, for instance, still have variable-rate mortgages, although the proportion with fixed-rate home loans is rising (thanks, in part, to lower inflation).
Recently, though, the largest private lenders introduced fixed-rate college loans, which can be cheaper than some of the federal government rates.
The increased price of fixed-rate home loans since then has been driven by the increasing cost of borrowing the funds on the financial markets.
Others cannot qualify for the fixed-rate "prime" loans they need, or they are prohibited from refinancing by prepayment penalties meant to assure the lender that the borrower's high payments would continue for a minimum number of years.
Where floating-rate loans and stocks rode higher in March, fixed-income securities trended lower as stronger economic tides pushed up 10-year Treasury yields by 24 bps, to 2.21% on March 31, from 1.97% a month earlier, according to Bloomberg.com and the Federal Reserve.
Loans from any of these sources can come in a number of flavors, including fixed interest rate or adjustable interest rate, and with various terms, from 5 years for some adjustable-rate loans up to 40 years for some.
The plan includes refinancing some of the borrowers into private, fixed-rate mortgages, or putting them into Federal Housing Administration loans.
The CFPB is concerned that some loan officers may be promoting fixed-rate, lump-sum reverse mortgages over adjustable-rate loans.
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