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Interest Only Mortgages Standards

Mortgages Home Loans - The guidelines, issued last week by federal bank regulators, require banks to use more restrictive standards in evaluating borrowers' ability to repay interest-only and pay-option adjustable-rate mortgages, and to more fully disclose their costs.

The National Association of Realtors says it "strongly supports efforts to educate consumers" and that the guidelines will "ensure that lenders inform consumers about the risks related to nontraditional financing options."

NAR "is very concerned that some borrowers are using nontraditional mortgages without fully understanding the risks involved," said NAR President Thomas M. Stevens in a statement. NAR and the Center for Responsible Lending last year created an educational brochure, "Specialty Mortgages: What are the Risks and Advantages," for Realtors to use in counseling clients.

Hipotecas Prestamos October 5, 2006 03:58 PM