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 October 16, 2007

Study Finds ARM Borrowers Do Not Know the Terms of Their Loans
A recently conducted national survey of 500 holders of adjustable rate mortgages discovered that 73% did not know how much their monthly payment would increase the next time interest rates increase.
The survey was conducted by the AFL-CIO labor union. It indicates that holders of these types of loans are unprepared to handle the burden of increased monthly mortgage payments. The survey concluded that 1 in 5 borrowers are unaware of their current interest rate and 25% do not know when their lender will increase their monthly payment.

AFL-CIO President, John Sweeney stated that predatory lending practices stick consumers with bad loans and also fail to provide these home owners with the basic information that is needed in order to survive in the current market.

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