Unexpected ARM Index Adjustments; RESPA to be Repealed?; Option ARM’s Resurface; Wells Fargo Changes Name to Norwest; April Fools Joke
Posted To: Pipeline Press
Holders of adjustable-rate mortgages across the country are complaining that the rate used to calculate their loans has actually gone up . In some cases loan payments went up by 9%. "What is this 'COFI'?" asked one borrower in California. "Next thing you'll tell me is that the value of my home could actually go down – no way!" On December 31, the Federal Home Loan Bank of San Francisco, which oversees the COFI, first published in 1981, announced without explanation that the rate had jumped 0.835 percentage point to 2.094% from 1.259%. The index is called the 11th District Monthly Weighted Average Cost of Funds Index, or COFI for short. The 11th district covers California, Arizona and Nevada. One broker in Illinois said, "Why should rates go up and impact…(read more)