[quote=sdrealtor]It also mentions that once they do adjust the payment shock would be minimal so the only real danger is for those who suffer loss of employment. I am stunned if this is accurate as I beleived this was one of the real shoes that could drop. Government manipulation at its finest.[/quote]
I think the 2nd responder missed a crucial point here. The original article mentions one real danger other than loss of employment: overstated income at the time the original loan was written. Some originators had as much as 80% of loans in the “liar loan” category.
So… if a borrower was barely making her (inflated) monthly payments, even a small payment “shock” could end up being rather shocking indeed.
[Where are the new words “alot” and “beleived” coming from?]
