Homeowner advocates are particularly concerned about HELOC loans. These loans generally have a reset provision that allows 10 years of interest-only payments but then much larger payments over the last 15 years. This reset problem will be a serious issue as more loans hit the 10-year mark and reset. For example, a $200,000 loan with interest only at 3% will carry a $500 monthly payment that will increase to $1,381 upon reset. Very few homeowners are even aware of the reset provision. We anticipate more difficulty ahead for homeowners who hit the 10-year mark, which may cause a second wave of mortgage defaults.