A call for documentation

REGULATORY UPDATE

The institutions' policies for non-traditional mortgage lending activity should set forth acceptable levels of risk through its operating practices, accounting procedures and policy exception tolerances. The policies should reflect appropriate limits on risk layering and should include risk management tools for risk mitigation purposes.

Non-traditional mortgage products include 'interest-only' mortgage loans where a borrower pays no principal for the first few years of the loan, and 'payment

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