Industry Groups Hope Federal Regulators Heed Call for Changes in Proposed Guidance for Alternative Mortgages
April 13, 2006
Federal financial institutions regulators have no plans of curtailing or imposing limits on institutions with a proven track record in originating and managing the risks associated with nontraditional mortgages, but the proposed guidance for these products is causing great concern in the industry. There is a sense of urgency among federal regulators to get a final guidance out before the interest rates on a large number of these so-called exotic mortgages reset in 2007.…