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- Title
DISCUSSION: ALAN J. DONZIGER.
- Authors
Donziger, Alan J.
- Abstract
In the paper I shall discuss Stansell and Millar examine the variable rate, variable payment mortgages issued by the Farm Credit Banks. They are concerned with the question of whether adjusting the mortgage payment puts an undue burden on the borrower. To answer this question, an examination is made of how the mortgage payment to mortgagor net income ratio changes over a period of time. The authors conclude that "the variable rate, variable payment mortgage did not constitute an undue burden on the mortgagor." Studying this paper I have found several serious problems, some of a conceptual nature and others of a technical nature concerning the statistical procedures employed. Because of these problems I have serious doubts whether a case has been made that these mortgages do not constitute an undue burden on the mortgagor. My discussion summarizes some of the reasons for these doubts.
- Subjects
UNITED States; ADJUSTABLE rate mortgages; MORTGAGES; MORTGAGE rates; VARIABLE rate loans; LOANS
- Publication
Journal of Finance (Wiley-Blackwell), 1976, Vol 31, Issue 2, p437
- ISSN
0022-1082
- Publication type
Article
- DOI
10.2307/2326613