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Overview: Mon, May 20

Greenspan, Alan

Tuesday, 19 July 2005

The increase in the prevalence of interest-only loans and the introduction of more-exotic forms of adjustable-rate mortgages are developments of particular concern...Some households may be employing these instruments to purchase homes that would otherwise be unaffordable, and consequently their use could be adding to pressures in the housing market.  Moreover, these contracts may leave some mortgagors vulnerable to adverse events.