Selling Option Adjustable Rate Mortgages
By Barry Ritholtz - December 25th, 2008, 10:20AM
An excerpt from a training video produced in 2005 by World Savings Bank. The video demonstrates how brokers were encouraged to sell Option Adjustable Rate Mortgages.
World Savings Bank Training Video
(click, than scroll down to video on lower left column)
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Source:
Visits to U.S. Retailers Fell 24% on Weekend Before Christmas
Allison Abell Schwartz
Bloomberg, Dec. 25 2008
http://www.bloomberg.com/apps/news?pid=20601087&sid=auJbdfD2koc0&
December 25th, 2008 at 7:57 pm
The funny thing is the broker is right – the amortization is trivial in comparison to market value changes. I worked through the math in a CRE context here:
http://residentialpropertyanalytics.blogspot.com/2008/12/problem-with-interest-only.html