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Unpublished Paper
HOW THE GOVERNMENT CAN PROTECT HOME MORTGAGE CONSUMERS: A PROPOSAL TO PROVIDE CONSUMERS A RISK ASSESSMENT OF MORTGAGES
ExpressO (2008)
  • Adeline Park, University of Pennsylvania
Abstract

The recent sub-prime mortgage crisis has revealed the consumer’s vulnerability in the home mortgage marketplace. Consumers face an overwhelming variety of mortgage options, and are not motivated to invest the necessary time and resources to comprehend the meaning and implications of each loan feature. I propose that the government assess the risk of each loan feature available in the home mortgage market, based on the historical number of foreclosures each loan type has yielded. The government will then require lenders to display the risk assessment icon on all sales, marketing, and advertising materials. The risk assessment icon will identify the risky loan feature and the percentage likelihood that the feature will lead to foreclosure.

Keywords
  • home mortgages,
  • risk,
  • consumer protection
Disciplines
Publication Date
May 20, 2008
Citation Information
Adeline Park. "HOW THE GOVERNMENT CAN PROTECT HOME MORTGAGE CONSUMERS: A PROPOSAL TO PROVIDE CONSUMERS A RISK ASSESSMENT OF MORTGAGES" ExpressO (2008)
Available at: http://works.bepress.com/adeline_park/1/