OTS Sounds Another Warning About Risky Alternative Mortgage Products
November 23, 2005
Federal regulators continue to bang the drum in warning about the risks associated with alternative mortgage products – especially pay-option ARMs. In recent months, the Federal Reserve Board, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Office of Thrift Supervision have all sounded off on the dangers – and the benefits – associated with nontraditional mortgage products. In general, the regulators have cautioned that banks and…