Nontraditional Mortgage Product Risks
In January, 2007, the Nebraska Department of Banking and Finance adopted a set of regulatory guidelines covering the marketing of nontraditional mortgages by state-licensed entities. These guidelines promote consistent regulation in the mortgage market and clarify how residential mortgage providers can offer nontraditional mortgage products in a way that clearly discloses the risks borrowers may assume. For a copy of the guidelines click here.
Illustrations of Consumer information on Nontraditional Mortgage Products
In June, 2007, the Federal Financial Agencies published final Illustrations of Consumer Information for Nontraditional Mortgage Products. The Illustrations are intended to assist institutions in implementing the consumer protection portion of the Interagency Guidance on Nontraditional Mortgage Product Risks adopted by the Department. The use of the Illustrations is voluntary for licensees, but using the Illustrations does ensure full compliance with the consumer protection provisions of the Guidance. Click here for a copy of the Illustrations.
Statement on Subprime Mortgage Lending
CSBS, AARMR and NACCA have developed a Statement on Subprime Mortgage Lending that was developed to address emerging issues and questions relating to subprime mortgage lending practices. The Statement pertains to mortgage providers not affiliated with a bank holding company or an insured financial institution and clarifies how licensees can offer subprime loans in a safe and sound manner that clearly discloses the risks that borrowers may assume. Click here for a copy of the Statement.