Question
In the new model of mortgage lending, local mortgage-originating banks do not care if borrowers can repay their mortgages. What economic term captures this behavior?
In the new model of mortgage lending, local mortgage-originating banks do not care if borrowers can repay their mortgages. What economic term captures this behavior?
Sub-prime lending standards
Competition
Moral hazard
Adverse selection
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Personal Financial Planning
Authors: Lewis J. Altfest
2nd edition
1259277186, 978-1259277184
