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&

Category: Credit, Real Estate, Video

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One Response to “Selling Option Adjustable Rate Mortgages”

  1. KevinKleen says:

    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