CFA Says Survey Results Show Lack of Knowledge About ARMs Risk
WASHINGTON - The Consumer Federation of America will release at a press conference on July 26 the results of a new consumer survey on attitudes towards and understanding of the mortgage market. New information on the differences between low-income and minority Americans and others will also be available. According to the CFA, adjustable rate mortgages are now being marketed to lower-income Americans and have become the choice of over 30% of homeowners. However as the study results will show, CFA says these consumers are "increasingly unaware of the risks associated with ARMs." Also on the agenda for the July 26 press conference is: a discussion on how differences in income and ethnic background effect risk assessment association with ARMs; why fixed rate mortgages are better for lower-income and minority consumers; which economic and ethnic groups are more likely to prefer ARMs; and the consumer costs of ARMs.