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Thus, the shift away from GSE securitization to private-label securitization ( PLS ) also corresponded with a shift in mortgage product type, from traditional, amortizing, fixed-rate mortgages ( FRM's ) to nontraditional, structurally riskier, nonamortizing, adjustable-rate mortgages ( ARM's ), and in the start of a sharp deterioration in mortgage underwriting standards.

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Thus, the shift away from GSE securitization to private-label securitization ( PLS ) also corresponded with a shift in mortgage product type, from traditional, amortizing, fixed-rate mortgages ( FRMs ) to nontraditional, structurally riskier, nonamortizing, adjustable-rate mortgages ( ARMs ), and in the start of a sharp deterioration in mortgage underwriting standards.

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