Adjustable rate mortgages were part of the scam. They needed this to cause the defaults. The Sub Prime Crime was about scamming low and middle income workers into guaranteeing debt that the banks then pretended were their assets. You see it doesn't really matter what name is above the door of a bank. They are all the same bank. Owned by the same people, regulated by the same government, and their corruption and gambling backed up with U.S. Taxpayer Dollars when they implode. When Joe Blow (A) bought Joe Blow (B)s price inflated home and some digits went from A to B nothing actually went anywhere. Banks routinely loan money they don't actually have. The whole idea was to use the ARMs to cause as many defaults as possible and in the ensuing panic discard as much fraud as possible. Like a thief setting a house on fire to hide any evidence left behind.