Description: IF you can’t divide 300 by 2, should you qualify for a loan? That is one of the questions raised by a new study led by a Columbia University assistant business professor, Stephan Meier, who found that borrowers with poor math skills were three times more likely than others to go into foreclosure.

Source: NYTimes.com

Date: 06/09/2010

Link: http://www.nytimes.com/2010/06/13/realestate/13mort.html?ref=business

Questions for discussion:

• What does the study suggest about the ethics of lending money?
• How should lenders and borrowers respond to this information?
• Should the financial services industry use a “test” to establish the risk associated with the borrower?