- Joined
- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
- State
- North Carolina
http://www.record-bee.com/ci_10683519
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.
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.
