http://www.arnoldkling.com/blog/conflict-of-interest-in-mortgage-lending-and-the-role-of-regulation/ taking the most charitable view of those who disagree Mon, 21 Dec 2020 00:12:22 +0000 hourly 1 https://wordpress.org/?v=4.0.32 http://www.arnoldkling.com/blog/conflict-of-interest-in-mortgage-lending-and-the-role-of-regulation/#comment-170904 Fri, 18 Oct 2013 14:12:16 +0000 http://www.arnoldkling.com/blog/?p=2051#comment-170904 type I error is the most costly error, which is accepting a bad loan

]]> http://www.arnoldkling.com/blog/conflict-of-interest-in-mortgage-lending-and-the-role-of-regulation/#comment-170132 Fri, 18 Oct 2013 02:59:35 +0000 http://www.arnoldkling.com/blog/?p=2051#comment-170132 These are good points. Only one quibble: I think you technically have Type I and Type II errors backwards. Type I = rejecting a good; whereas, Type II = accepting a bad. Right?

]]> http://www.arnoldkling.com/blog/conflict-of-interest-in-mortgage-lending-and-the-role-of-regulation/#comment-169486 Thu, 17 Oct 2013 18:32:47 +0000 http://www.arnoldkling.com/blog/?p=2051#comment-169486 It is possible to cheat customers without their knowing it. Mortgage math is confusing. Fees are confusing. The settlement process is confusing.

]]> http://www.arnoldkling.com/blog/conflict-of-interest-in-mortgage-lending-and-the-role-of-regulation/#comment-169182 Thu, 17 Oct 2013 14:47:53 +0000 http://www.arnoldkling.com/blog/?p=2051#comment-169182 On your first point, there is another kind of reputation to factor in: people ask their friends and associates who they use. If you factor that in, then I’m not sure how effectively a mortgage initiator can cheat their customers. The first time one customer notices, they’ll ring the alarm, and so many others will notice as well.

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