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Loan Modification

: Loan Modification & Home Loan News

Did financial illiteracy contribute to subprime crisis?

By Moe Bedard

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It makes intuitive sense that complicated mortgage products would pose the most danger the borrowers who were least able to understand them. But did that intuition bear out in the real world? Sadly, yes. According to a new paper by Kristopher Gerardi, Lorenz Goette and Stephan Meier, “foreclosure starts are approximately two-thirds lower in the [...]

Full post as published by Loan Modification & Home Loan News on April 26, 2010 (boomark / email).

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