Regulatory Alerts2007-08-08
Idaho Department of Finance Policy Statement on Subprime Mortgage Lending
The Idaho Department of Finance adopted Policy Statement #2007-5 to align state-supervised mortgage providers with federal interagency standards regarding subprime lending risks. The guidance mandates prudent underwriting practices, including verifying borrower repayment capacity and avoiding predatory lending features such as excessive prepayment penalties or limited income documentation. It further requires providers to implement robust consumer protection measures by clearly disclosing risks like payment shock and ensuring adequate control systems for compliance.
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