Industry News

Tighter standards for new mortgages coming soon

Regulators say borrowers need more disclosures in new complex loans
Published on Sep 22, 2006

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by CareyBot

New guidelines that would require banks to tighten underwriting standards and track portfolio risks on nontraditional mortgages while providing more comprehensive disclosures to borrowers will be finalized this fall, a federal regulator told members of the Senate Banking Committee Wednesday.

Kathryn E. Dick, deputy comptroller of the Office of the Comptroller of the Currency, said that interest-only and payment-option adjustable-rate mortgages (ARMs) are complex products that are often marketed to people who don't understand their risks ...

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