http://www.mortgagenewsdaily.com/1122006_Adjustable_Rate_Mortgages.aspWhile the flattening of the yield curve has not noticeably hurt the popularity of ARMS, it is largely lender discounts that have kept the products in the game.enCommunityServer 2008 SP2 (Build: 31106.96)http://www.mortgagenewsdaily.com/1122006_Adjustable_Rate_Mortgages.asp#12169Sat, 26 May 2007 11:00:00 GMT2bb7a989-b681-446d-a7f2-bd5f0562f228:12169bobbyAs a trader of agency and non agency arms - liquidity in the 3 and 5/1 arms is stronger whereas the volatility in liquidity remains on the 1 yr ARMs as sizing and trading ability is weak. Obviously the borrower is not being thought of. <div style="clear:both;"></div><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=12169" width="1" height="1">http://www.mortgagenewsdaily.com/1122006_Adjustable_Rate_Mortgages.asp#12168Sat, 27 May 2006 11:00:00 GMT2bb7a989-b681-446d-a7f2-bd5f0562f228:12168AnonymousHow do lenders make a profit on 1-year ARMs with the spread between the three months treasury and the 1-year ARMs narrowing?<div style="clear:both;"></div><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=12168" width="1" height="1">