Saturday, July 07, 2007
New U.S. Guidelines Curb Risky Home Loans
It won't mean the end to no-income verification or high-risk mortgages for subprime homebuyers, but new guidance from federal financial regulators will almost certainly cut their availability sharply.
In a long-awaited policy statement on loans to borrowers with imperfect credit histories, federal financial regulators a week advised banks, credit unions and their mortgage subsidiaries to verify income, assets and employment on all loans except in special cases where borrowers could demonstrate substantial financial reserves.
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