The Real Deal New York

From the February issue: The surge of foreclosures resulting from subprime home loans around the country has largely missed Manhattan, though the island has felt its effects in tightening loan standards. It remains to be seen whether a wave of adjustable-rate mortgages, or ARMs, about to reset this year (some of them subprime and others not), may place Manhattan in a more vulnerable position, though most experts are betting it won’t. Subprime mortgages are loans made to borrowers with poorer credit at higher interest rates. ARMs are loans that enable a consumer to determine monthly repayments based on fluctuating interest rates. In general, the most popular types of loans being taken out are the five-year, seven-year and 10-year ARMs, said Melissa Cohn, the president of Manhattan Mortgage Company.