An important debate is raging inside the home mortgage market, though well beyond the earshot of most consumers.
The issue: Popular "payment-option," interest-only and piggyback loans -- and the financial risks they pose to home buyers and lenders alike. On the one hand, federal financial regulators say the risks are too significant to ignore, so lenders need to take special care in evaluating and approving customers who apply for these mortgages. The regulators want to impose new creditworthiness restrictions and disclosure requirements that would force lenders to be certain that borrowers understand the potential dangers. (Read More) Source: Washington Post