payoption loans: Defending Negative Amortization Loans.
- 09/26/06 06:45 PM
I'm going to defend this product, well, a little bit. Roberta Murphy, one of my favorite hometown Active Rain Realtors posted a blog about neg am loans calling for stricter underwriting guidelines. I essentially agree with her but want to explain a few finer points of neg am loans. Firstly, let's start calling these products by their true names: either deferred interest loans or negative amortization loans. Why am I being a stickler for that? The "Option ARM" name was coined about 8-9 years ago by Washington Mutual in order to downplay the "negative connotations of the product's real description". Countrywide (3 comments)