Home Loan Sales to ARCs Increase Amidst Rising Stress

Imagine banks giving out loans for houses.

Lately, some people haven't been able to pay those loans back.

This is causing banks a bit of trouble.

Because of this, banks are selling these problematic loans to special companies called ARCs.

In the second quarter of 2025, ARCs bought a lot more of these loans than they did the year before.

This is especially true for loans for affordable houses.

Some banks are having more trouble than others, with a portion of their home loans not being paid on time.

This might be because the housing market has changed a bit.

While interest rates on loans have gone down, not as many people are taking out new loans.