Industry News

Specialty real estate loans carry heavy risk

Realtor trade group spreads the word in new brochure

The National Association of Realtors trade group and the Center for Responsible Lending are trying to drive home a message of caution about some types of specialty mortgages in a new brochure titled, "Shopping for a Mortgage? Do Your Homework First," a new brochure to inform home buyers about the risks and advantages of specialty mortgage products. The publication is part of a new NAR consumer education campaign addressing specialty loans and abusive lending practices. The brochure helps consumers understand conventional loans such as fixed-rate and adjustable-rate mortgages, and more exotic loan programs such as interest-only mortgages, 40-year fixed-rate mortgages, negative-amortization mortgages, and option payment adjustable-rate mortgages. The Center for Responsible Lending is a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, o...