A study by First American CoreLogic predicts that 1.1 million of the 8.37 million adjustable-rate mortgage loans originated between 2004 and 2006 will end up in foreclosure over a six- to seven-year period.That would be a cumulative 13% foreclosure rate on the $2.2 trillion portfolio. First American CoreLogic predicts that the defaulted loans will account for $326 billion of debt, and that even after the foreclosure and sale of the property, lenders and investors will lose $112 billion. Christopher Cagan, director of research and analytics at First American CoreLogic, said the impact of reset-based foreclosures will be greatest among subprime home loans and loans with low initial "teaser rates."

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