Industry Groups Urge Regulators to Rethink the Need For Guidance on Nontraditional Mortgage Products
Industry trade groups have warned regulators against taking too firm a hand in trying to guide the fastest-growing sector in an otherwise slowing mortgage market: nontraditional loan products. The warnings came in comment letters submitted in response to proposed guidance issued in December by the Federal Financial Institutions Examination Council which would set marketing, underwriting, servicing and consumer protection standards for products such as option adjustable-rate mortgages and interest-only loans. …