http://www.perfectdayplanners.com/blog/sub-prime-lending-issue/ Mon, 15 Mar 2010 00:04:24 -0600 http://wordpress.org/?v=2.8.4 hourly 1 http://www.perfectdayplanners.com/blog/sub-prime-lending-issue/comment-page-1/#comment-4577 Phineas Bogg Wed, 01 Jul 2009 14:43:10 +0000 http://www.perfectdayplanners.com/blog/sub-prime-lending-issue/#comment-4577 I will not be able to "write a one to two page commentary", however, I came across a very interested article about the type of loans issued. The basic idea seemed to be that adjustable rate loans with no allowed prepayment eliminate two major sources of risk for lenders (interest rate risk and prepayment risk), so in theory lenders should be able to offer these loans with good rates and thus pass on the savings to borrowers. I will not be able to “write a one to two page commentary”, however, I came across a very interested article about the type of loans issued. The basic idea seemed to be that adjustable rate loans with no allowed prepayment eliminate two major sources of risk for lenders (interest rate risk and prepayment risk), so in theory lenders should be able to offer these loans with good rates and thus pass on the savings to borrowers.

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