Re:U.S. Secretly Halted JPMorgan’s Growth for Years
by tomp on Monday October 29, 2018 @06:19AM
(#18326258)
Huh?! AFAIK the majority of the mortgages just before the GFC were literally "no risk zero deposit" - if you couldn't repay, you could just move away and mail the keys to the bank, and you had no other obligations. Perfect (for the loan-taker) in case the housing market started crashing or just declining. You'd be stupid not to take such a loan!
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Re:U.S. Secretly Halted JPMorgan’s Growth for Years
by pas on Monday October 29, 2018 @07:16AM
(#18326478)
Could you please share some sources about this?
Re:U.S. Secretly Halted JPMorgan’s Growth for Years
by tomp on Monday October 29, 2018 @08:47AM
(#18327027)
Ah, took me a while to find the right Google term: "nonrecourse loan".
I'm not sure anymore how big a cause for the crisis they were - there are articles arguing both directions.
https://ftalphaville.ft.com/2017/03/03/2185420/fed-vs-fed-on...
http://webcache.googleusercontent.com/search?q=cache:Hsi8ZX8...
Chapter Economic Incentives in the Housing and Mortgage Origination Markets in https://www.brookings.edu/wp-content/uploads/2016/06/11_orig...