These types of mortgages are estimated to have accounted for about one-third of all U.S. mortgage originations in 2006, compared with less than one-tenth just a few years earlier. Nontraditional mortgage products have been available for many years; however, they have historically been offered to higher-income borrowers.
More recently, nontraditional mortgages have been offered to a wider spectrum of consumers, including consumers who may be less able to afford the jump in monthly payments common in these types of mortgages and may not fully recognize their embedded risks.