The warning drum continues to beat on adjustable rate and interest only loans.
With the outlook of interest rates only continuing to rise, the Federal Reserve reiterates its messages of risky home loans in the midst of a housing bubble. Certainly, with most major US markets showing signs of a cooling real estate market, those speculative buyers who are holding interest only loans are certainly under the gun when a combination of risky loans and dropping home prices squeezes profit scenarios that might no longer exist.
WASHINGTON | Federal Reserve Chairman AlanGreenspan is turning up the volume on his warnings about the potentialperils of certain risky mortgages if the high-flying housing marketloses significant altitude.
There are signs some companies are getting the message. A few have begun scaling back some types of those mortgages or making them less appealing by raising costs.
Nation's most well-known economist sounds caution about risky loans | via Mcall.com
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