GE Loan Group Pushes Into Japanese Mortgages

Japanese papers report that GE Consumer Finance is offering low-interest mortgage rates to customers in so-called "high value" professions. The firm says skilled workers are less likely to default on their loans. So lawyers, doctors and accountants have been granted an interest-rate reduction of up to 1 percentage point a year on home loans.

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RENEE MONTAGNE, host:

One reason mortgage defaults are skyrocketing is that lenders gave out home loans at the drop of a hat, and to many borrowers with questionable credit histories. That's unlikely to become a problem in Japan. Our last word in business today is selective lending.

Japanese papers report that GE Consumer Finance is offering low-interest mortgage rates to customers in high-value professions. Lawyers, accountants and doctors can get an interest rate reduction of up to one percent point a year on their home loan. The very logical reason: they're more likely to actually pay off that loan. And if the borrower's children also have professional qualifications, it will bring down the family mortgage rate even further.

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