Date: October 17th, 2006

A duty to whom? Part 2, the economics

17 October, 2006 (09:14) | Uncategorized |

 

[Continued from yesterday's Part 1.]

Yesterday we discovered that the OCC had issued a strong cautionary guidance warning lenders that they had new responsibilities when selling new financial products.

So let’s see why these new products are riskier.

We start with the old-style mortgage everyone’s parents took out:

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