There is one question that every wrapper, or supporter of wrapping, always seems to sidestep. It is a question that goes to the heart of the wrapping debate. The answer to this question effectively destroys any argument in support of wrapping. At least, on ethical grounds.
The question is this: What happens to the buyers (the wrappees) if the investor (the wrappers) fail to pay the lender on the ‘head’ loan held by the investor?
The answer is that the buyers lose what they thought was their family home. Plus their deposit. Plus all their payments. Plus any money spent improving their home.