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Option ARM loans aren't all bad
Summary from multiple countries, from articles in English
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The new regulations particularly target abuses in the subprime mortgage market, which has been largely unregulated because the loans are secured and held by private investors. (article 6)
Subprime mortgages, designed to make loans available to borrowers with low incomes or poor credit, carry above-market interest rates to compensate investors for the added risk of default. (article 6)
" This probably would not be the loan for a person who planned on making just the minimum payment every month said the Washington Mutual senior loan consultant. (article 5)
Earlier this year, the bank had closed its home loan centers, sending potential residential mortgage applicants to its retail banking outlets. (article 5)
" The second mortgage was usually an adjustable-rate loan with a balloon payment (requiring complete repayment of that loan within a just a few years), and that's what got people into trouble Lubar says. (article 3)
(Ted S. Warren/Associated Press) The U.S. Federal Reserve Board has approved a rule that prohibits unfair, abusive or deceptive home mortgage lending practices for subprime loans, the agency said Monday. (article 7)
The rule adds four limits on lenders who make higher-priced mortgage loans: Prohibit a lender from making a loan without regard to a borrower's ability to repay the loan from income. (article 7)
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Other summaries about this story:
Event tracking:
Story keywords
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loan, Mortgage, borrower, Lenders, Fed |
Source articles
- ABC News: Panicking? See How to Protect Your Money (ABCNews, 07/15/2008, 471 words)
- Why Seller Financing Should Be a Last Resort (Washington Post, 07/14/2008, 570 words)
- Seattle Times Newspaper Blog (blog.seattletimes.nwsource.com, 07/16/2008, 203 words)
- News for Dallas, Texas (dallasnews.com, 07/16/2008, 758 words)
- Option ARM loans aren't all bad (boston.com, 07/16/2008, 460 words)
- The new regulations particularly target abuses in ... (baltimoresun.com, 07/16/2008, 588 words)
- U.S. regulator toughens subprime mortgage rules (cbc.ca, 07/14/2008, 349 words)
- What the Fed isn't fixing (L.A. Times, 07/16/2008, 609 words)
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blaster@cs.columbia.edu
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