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Business
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| Number of pages / Number of words: |
9 / 2519 |
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Also, the terrible judgment by borrowers and lenders looking to make a quick commission is a major factor. Lastly, we are seeing the spike in adjustable rate mortgage rates away from the teaser introductory rates. All of this coupled with a drastic decline in housing prices, or the burst of the housing bubble have made it very hard to refinance homes and lock in a fixed rate loan (Credit Squeeze)...
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All of this coupled with a drastic decline in housing prices, or the burst of the housing bubble have made it very hard to refinance homes and lock in a fixed rate loan (Credit Squeeze).
A. Credit Risk
What is usually referred to as the risk of defaulting on a loan is defined as credit risk. It is typically assumed by the bank that originated the loan...
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