Regulatory Alerts2007-09-01
Added · Updated
Proposed: 2108/2209 Statement on Subprime Mortgage Lending
The State Bank Commissioner proposes adopting new Regulations 2108/2209, 2302, and 3402 to establish parallel standards for subprime mortgage lending, exemptions, and surety bonds for non-depository institutions in Delaware. Regulation 2108/2209 defines subprime borrowers based on credit history and debt-to-income ratios, mandates prudent underwriting and consumer protection principles, and prohibits predatory lending practices. Regulation 2302 implements statutory exemptions for certain financial entities, while Regulation 3402 sets criteria for determining required surety bond or letter of credit amounts. These proposals are open for public comment and a hearing scheduled for October 2, 2007, with adoption planned on or after that date.