Industry Groups Hope Federal Regulators Heed Call for Changes in Proposed Guidance for Alternative Mortgages
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.…