Wednesday, November 29, 2006

Update: State Version of Nontraditional Mortgage Guidance

by Bill McBride on 11/29/2006 11:58:00 AM

This web page, from the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR), tracks the states that have implemented the new Nontraditional Mortgage Guidance. As of this morning, there are eleven states listed. More are expected to be added this week.

From the CSBS this morning: The CSBS expects that all 50 states will adopt the guidance. Some states will issue regulations:

"So far, the majority of the states that have adopted have issued as regulatory guidelines. A few states (Massachusetts, for example) have or are going to begin their process to make a new regulation. This option takes longer to adopt, but is a much stronger regulatory tool. We have also had states indicate that they are issuing as guidance now, but if their regulated entities do not comply with the guidance, they will propose the guidance as a regulation."
Note: This is the state version of the Federal Financial Regulatory Agencies guidance released in September. Here is the state version: GUIDANCE ON NONTRADITIONAL MORTGAGE PRODUCT RISKS