[Rick Lee]

Lenders don't invent these products. Investors do. Lenders only make loan products which they can then turn around and sell to investors once funded. They make their money right away and the investors carry the risk. I can't believe any investors would invent some of the products out there now, but I assure you they are not doing so in the hopes of a federal bailout. Any bailout would not pay them a penny on their losses, but rather just refi the deadbeats into Fannie/Freddie or FHA products.

Tobra, your buddy's brother in-law should learn to understand and be ressponsbile for the docs he signs. Option ARM's and interest only loans are not difficult to understand at all. If you're old enough to own a house, you should be old enough to understand the financing.