Freddie Macs ARM Survey Notes Increased Lender Discounts Freddie Macs ARM Survey Notes Increased Lender Discounts
While the flattening of the yield curve has not noticeably hurt the popularity of ARMS, it is largely lender discounts that have kept the products in the game. Not entirely surprising since lenders have large incentives to keep them in the game. Given the way that revenues are booked by lenders, they are heavily incentivized to push ARMS

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