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Fixed-rate, long-term lending is quite prevalent in the U.S. for real estate transactions but is virtually unknown in Europe, where rates are routinely adjusted every

Fixed-rate, long-term lending is quite prevalent in the U.S. for real estate transactions but is virtually unknown in Europe, where rates are routinely adjusted every three-to-six months. How would variable-rate lending affect the underwriting process for residential lending were the U.S. to switch to the European model? Explain in detail.

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