The credit crisis, interest rates, and 100 percent loans? - funded credit default swap
As the crisis been so bad if 100 percent of the loans that were offered during a period when the Federal funds rate to 2.5% instead of financing as low as it was?
"People have the interest on loans taken only/100 percent? You have offered these loans? The fact that the incomes of those who have not choose to reduce ARM or interest only loans caused losses to foreclosures? We saw many executions?
I have tried to Fannie, Freddie, their participation in the credit crisis and the deregulation of credit default swaps credit. I'm curious whether deregulation has been hampered by the low interest rates. (ie, the people have good credit, which could be returned and defective loans would be reduced). Certainly, it should be larger than mortgages began. Right?
1 comment:
The "teaser" for weapons if the money lender rates could be financed. In other words, they lost money in such a small set of initial interest. But back in the primary (for every dollar lost is provided by the lender, the borrower an extra dollar in property - this will be) as negative amortization. The idea was, when the teaser ended (usually 3 years) and the arm on the market adjust prices, homeowners are sold at a profit, and lenders may pay more than they paid for.
Regardless of what the real interest rates on time while taking this exercise in the arms of small claims, for people who really could not afford the houses are finished, yet in a position. And everything was going well until home prices began the descent, where the business card at home with their mortgage.
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