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Archive for December 26th, 2008

Via The New York Times:

option-armsAs shown by the graphic, Wachovia was one of the biggest players in Option-Adjustable Rate Mortage origination – mainly because they acquired several banks which specialized in this field.

The article itself contains a very thourough history of how “Option ARMs” came into existence, and how they are predatory by nature:

“I don’t think anyone thought a Pick-A-Pay product was a customer friendly product,” says a former Wachovia executive who requested anonymity to preserve professional relationships. “It is easy to mislead them.”

Nice.

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