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Credit default swaps and those who issued them are to blame for crisis

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USPAP Compliant

Thread Starter
Elite Member
Jan 15, 2002
Professional Status
Certified Residential Appraiser
North Carolina

In minority areas, brokers steered prime loan borrowers away from fixed, thirty year loans to ARMs (adjustable rate mortgages) and interest only loans. In many instances, these ARMs didn't reset with interest rates but automatically, which guaranteed that the borrower would default. However, they brought in more money for the broker. Appraisers inflated the values they put on homes, which was especially important for borrowers who were refinancing since it allowed to increase the size of their loans.
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