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by CareyBot

Proposed federal guidelines on nontraditional mortgage loans are too specific and overbearing in mandating underwriting standards for lenders, a major mortgage brokers' organization said Wednesday. The Mortgage Bankers Association (MBA) said it believes the guidance on exotic loans is a good idea, but criticized the proposed new guidelines, released in December by the Office of the Comptroller of the Currency, as "overly prescriptive in mandating specific underwriting standards," also saying some sections should be clarified or removed. Nontraditional mortgage loans such as interest-only and certain adjustable-rate mortgages have become popular over the last few years as soaring home prices made it more difficult for consumers to afford homes. Though such loans often served the purpose, t...