2Do you think it is prudent to still be offering this type of loan?

Why or why not?

The Wall Street Journal posted an article, “Interest-Only Loans Set the Bar High” by Anya Martin, noting that at the start of 2015, interest-only loans are making a comeback. Given the housing subprime mortgage crisis of 2008, this is somewhat surprising. An interest-only loan is one in which a borrower makes monthly payments on only the interest and puts nothing toward the principal for a set time period.
Read the article to see how lenders are reducing their risk differently than they did before the 2008 crisis and then consider the motivations and risks for using this financial option, for both the lender and borrower.