Subprime: The Case of Targeted Legislation: Part 2, the proposal
[Continued from yesterdays Part 1.]
Yesterday, using as a springboard a story from The New York Times, I looked at the prepayment-penalty trap which has now caught many subprime borrowers: loans with low introductory ‘teaser’ rates, that now step up, but that cannot be economically prepaid because of yield maintenance and penalties that make the [...]
