The CLOUD: No Name, No Docs, No Terms, No Balance Due: MBS Investors Screwed and Taking Borrowers Down With Them

That’s why the government knew these were NTMs (nontraditional mortgages) but the homeowners didn’t. “Hybrid ARMs were not being offered to expand credit through lower introductory payments; they were purposely designed to be unaffordable, to force borrowers into a series of refinancings and the fat fees that went along with them.” Sheila Bair, Bull By The Horns, pg.46.

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