Lenders are facing great and unnecessary risk
NEW YORK – The recent sharp increase in nontraditional mortgage lending is exposing banks and lenders to massive and unnecessary amounts of risk.
That is the verdict of new guidance released by the US Department of Treasury and the Federal Reserve urging banks, credit unions and mortgage lenders to implement stricter risk management protocols when offering such mortgages to protect both borrowers and themselves.
The Interagency Guidance on Nontraditional Mortgage Product Risks defines nontraditional mortgage loans as products that allow
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