Paul Mullings, president of First Interstate Residential Mortgage Corp., likes the two-month-old ARM his company is offering.

Since August, Mr. Mullings and his Pasadena, Calif-based company have offered borrowers an adjustable-rate mortgage with a penalty for prepayment, known as a call-protected mortgage.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.