Regulatory Alerts2007-07-30
Added · Updated
Nontraditional Mortgage Product Risks and Subprime Lending Model Examination Guidelines
The Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators issued these guidelines to provide state regulators with uniform examination standards for nontraditional mortgage products and subprime lending. The document defines covered transactions, such as interest-only and payment option ARMs, and outlines specific examiner instructions, checklists, and data requests for assessing compliance and safety. These standards apply to non-depository mortgage brokers and lenders to ensure adequate risk management, underwriting practices, and consumer protection across full or limited scope examinations.