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)

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&

PERMALINK
Category: Credit, Real Estate, Video.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “Selling Option Adjustable Rate Mortgages”

KevinKleen Says:
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

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