The Biggest Banks Are Eliminating The Most Prevalent Sub-Prime Loan

One more sign that the sub-prime apocalypse is upon us... Washington Mutual, Countrywide, Wells Fargo, and Merrill Lynch's First Franklin all recently announced the discontinuation of the staple 2/28 sub-prime mortgage product. The 2/28 is an adjustable rate mortgage in which the interest rate remains fixed for two years, and then adjusts for the loan's remaining 28 years. Think of it like a 2-year ARM, if that helps. But that's not the end of the changes. WAMU and First Franklin...

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[Source: The Mortgage Reports Blog]