Risk is still risk, no matter who manages it

An important lesson for everyone to remember during all of this bailout mania is that higher risk still costs more money - no matter who is managing it - the government or private companies. From our friend Chris at Loan Officer Survival Guide (whose book you should have in your library) comes a stunning email that confirms this reality. Citi has made huge pricing changes to their government products which make these supposed "affordabilty" products much more expensive. No matter how much Congress wants to make FHA bail out America the simple truths of risk management will continue to confound them. Check out these pricing modifiers based on credit risk: Share This