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The first, as I discussed above, is because they get more interest on an option ARM. Look at the couple from Wisconsin. They ended up with a higher mortgage balance at a higher rate. Both of those items mean more money for the bank in interest. Take that and multiply by the millions of option [...]

That was the question on the cover of the September 11th edition of BusinessWeek (no link). Some of the stories of the people and how they were duped by banks and mortgage brokers astounds me. We always assume that most of the people that buy bizarre (the industry prefers “exotic”) mortgage products are people that [...]

I was chatting with a friend over the weekend and realized that the major media is doing a terrible job of covering why the stock option scandal is important and what exactly is going on. So, I hope to rectify that.
Basically, there are two different “scandals” going on with different implications. The first one has [...]