ArnoldCountry

Credit Crisis Review: ARMed for Failure

As the California Supreme Court stated in the case of Wyatt v. Union Mortgage way back in 1979:

"In the context of insurance policies, this court has long recognized that oral misrepresentations made by an agent to a policyholder are actionable, despite the fact that the written policy itself accurately discloses all terms. "[If] the agent of the insurer undertakes to ad-vise [a policyholder], . . . it should be the duty of such representative to make no false or misleading statement in that respect." ( Glickman v. New York Life Ins. Co. (1940) 16 Cal.2d 626, 634 [107 P.2d 252, 131 A.L.R. 1292].)"

These new hybrid option arms that were created were so complex, even though their terms were included in very complex documents, truth is, these products misled the public into believing they could afford homes that they could not. The lenders new that... or at the very least... they SHOULD have known it. Remember the golden rule, "he who has the gold, rules." Well, they did a poor job ruling!