It can only loan to its member countries that have asked for assistance.
The ratings agency also claimed that 38% of all interest-only loans to older customers will have to be fully repaid within the next four years.
In particular, people in the financial services industry who derive most of their compensation from yearly bonuses commonly rely on interest-only loans to keep their mortgage payments manageable the rest of the year.
The union says KB engaged in "deceptive practices" and steered buyers toward its loans to control home prices, pushing interest-only loans to buyers who often did not understand what they were getting into.
Mr. Crowder, an associate for a venture capital group, plans to use interest-only loans to buy two homes in Florida -- a one-bedroom town house in Tampa, for $83,700, and a four-bedroom house in a gated lakeside community in nearby New Tampa, for $500,000.
But Fed officials now concede that problems in the mortgage market are broader than they once thought, with problems surfacing in so-called "Alt-A" mortgages, from interest-only loans to "no-doc" loans in which borrowers do not need to document their incomes.
Thiel talks about consumption masquerading as investment during the housing bubble, as people would take out speculative interest-only loans to get a bigger house with a pool and tell themselves they were being frugal and saving for retirement.
"Our risk group did an extensive review, analyzing performance by loan type," Cutrufelli said, and concluded that interest-only loans to certain customers are prudent for the bank.
I wonder if I can get an interest-only loan to finance my new nomadic lifestyle.
Some homeowners may find that if they approach their current lender to ask for a further loan, it will only say yes on the condition that they re-mortgage the whole of their original mortgage at a new higher rate, or agree to be moved from an interest-only loan to a repayment mortgage.
By examining only loans from banks to business, they ignore the contraction in consumer credit and in lending by other financial institutions.
