A proposal for a default rule in mortgage sales

“Stop trying to turn everyone into a financial planner,” says Lauren Willis of Loyola Law School in Money Magazine. “Instead, try to get everyone to understand that the people selling you financial products often don’t have your best interests at heart.”

Q: What type of regulation do you think would work?

A: Sellers could be required to offer you a default product that is safe. Whenever you applied for a mortgage, for example, you would have to be offered a 30-year fixed amortizing loan.

Hat tip: Freakonomics.

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