By Doug Cunningham

As the mortgage crisis continues to unfold, the AFL-CIO says a new survey found that nearly half of homeowners with adjustable rate mortgages don’t understand them and how they reset monthly payments. Nearly half a trillion dollars worth of adjustable rate mortgages, or ARM’s, will reset soon. The average increase in payments will be $291 per month. Leslie Tolf of Union Privilege says this is a story of uninformed people reaching for the American Dream while mortgage lenders created an American nightmare for them instead.

[Tolf]: “It is a crisis. And it’s a tale of two communities. We’ve got some consumers out there that are doing well; they’ve got a fixed rate loan, and others who are finding themselves in a terrifying situation of adjustable rate mortgages any time the interest rate climate goes up.”

Tolf says a "Save My Home" hotline is being created to give advice and information for union members on dealing with the coming ARM reset crisis. The number is 1-866-490-5361. The AFL-CIO survey by Peter D. Hart Research Associates showed 77 percent of homeowners want government to do more to regulate the mortgage industry.