Industry News

Specialty real estate loans carry heavy risk

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

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...