U.S. Homeowners Are Repeating Their Mistakes - Businessweek#r=rss

 

The other option is for banks to devise ways to reduce housing risk. When Weller worked as a banker in Germany in the 1980s, the bank would set up a savings account with automatic deposit for every mortgage customer. That way, the client would build up a cash reserve to pay the mortgage in a bad month. This remains a common practice in Germany, where banks hold on to their mortgages rather than securitize and sell them.

U.S. Homeowners Are Repeating Their Mistakes - Businessweek#r=rss