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Topic: Business
Number of pages / Number of words: 4 / 925
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Sub-prime loans are offered to those with spotty credit, often at a low initial interest rate for the first 2 years, and an adjustable rate for the next 28 years. But the sub-prime market has sunk as borrowers struggle to make payments, and the prime loan market has seen its fair share of troubles as well...


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But the sub-prime market has sunk as borrowers struggle to make payments, and the prime loan market has seen its fair share of troubles as well. Countrywide’s stock prices fell 80% in 2007 due to prime and sub-prime loan delinquencies, but how much of these delinquencies were due to consumer fault? Were Countrywide’s practices the cause of the delinquencies, or were consumers biting off more than they could chew? With multiple lawsuits against Countrywide in several states Bank of America has a long road of problem solving ahead now that the merger with Countrywide has gotten underway...


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