Federal Financial Regulatory Agencies Propose Guidance on Nontraditional Mortgage Products: "These nontraditional mortgage products include 'interest-only' mortgage loans where a borrower pays no principal for the first few years of the loan and 'payment option' adjustable-rate mortgages where a borrower has flexible payment options, including the potential for negative amortization. Institutions are also increasingly combining these mortgages with other practices, such as making simultaneous second-lien mortgages and allowing reduced documentation in evaluating the applicant's creditworthiness. "
Thursday, December 22, 2005
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