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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (6271)	10/27/2002 5:24:36 PM
From: MSI	Respond to of 306849

Such increased efficiency is fine, if they take care of the bank's obligations in the new equation: - don't kill you with fees - post you with timely and actionable notice of any changes in credit that might influence or even call the outstanding portion of the loan, as well as options to be taken if that happens - keep you posted with risk analysis of debt/equity ratios and other measures of liquidity and financial health, just as they do for themselves Doing that reduces the danger of efficient negotiation of equity into the 'moral hazard' for the borrower to convert equity more efficiently than otherwise, which isn't something that is legislatable.