In October a covey of federal agencies including the Federal Reserve,
The Federal Deposit Insurance Corporation, and the National Credit Union
Administration published what was called "final
guidance" on underwriting nontraditional mortgage products. This
guidance was designed to address risks associated with the growing use of
these mortgages (also referred to as exotic or alternative
loans) such as interest only and payment option adjustable rate
mortgages.
A month or so after the federal guidelines were
released, and we admit to being a bit behind the curve
on this one but it still seems worth mentioning...
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