NEW! CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Wednesday, September 27, 2006

Dow Jones: Exotic Mortgage Guidance To Be 'Benign'

by Calculated Risk on 9/27/2006 06:56:00 PM

Dow Jones reports: US Government Exotic Mortgage Guidance To Be 'Benign' -Analysts

Federal bank and thrift regulators are close to releasing final guidelines on exotic mortgage products, but the agencies aren't expected to call for wholesale changes in the way these products are marketed or made, three analysts wrote Wednesday.
Those guidelines are expected to become final in the next few days.

"We view the...guidance as relatively benign and unlikely to materially impact the business models of option ARM lenders, namely Countrywide (CFC), Washington Mutual (WAMU), Downey Financial (DSL), and Indymac (NDE)," three analysts from Friedman Billings Ramsey wrote in an industry update. [emphasis added]