by Calculated Risk on 3/06/2007 05:15:00 PM

Reuters reports: Subprime guidance may hit 60% of Countrywide ARMs

Sixty percent of Countrywide's customers seeking hybrid adjustable-rate mortgages, or ARMs, such as "2-28" loans would fail to qualify under the guidance that urges lenders weigh the borrower's ability to repay at the highest possible rate during the life of the loan, Countrywide CFO Eric Sieracki said at a Raymond James Financial Inc. conference in Orlando, Florida.

It is not clear from the article what percentage of Countrywide borrowers use hybrid ARMs.

Click on graph for larger image.

UPDATE: Here is the Countrywide presentation (hat tip: Cal)

And an audio recording.

The graph is from page 24 of the presentation.