The US Housing Market and the Subprime Mortgage Crisis (A) |
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Business Environment Case Studies Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source. |
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Excerpts Contd...Some Perspectives
OutlookIn early 2007, analysts were concerned that the interest rate would be increased further as this would lead to more foreclosures. Borrowers who had taken loans in 2006 and were to start paying variable interest rates in mid or late 2007 were thought to be the most vulnerable. “What will they do when their payment starts to rise?” said Glenn Costello of Fitch Ratings...
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