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Subprime Mortgages Meet Stricter Federal Rules

“Stated income and reduced documentation loans to subprime
borrowers should be accepted only if there are mitigating
factors that clearly minimize the need for direct verification
of repayment capacity,”

“However,” the regulators added, “a higher interest rate is
not considered an acceptable mitigating factor.”

Federal Financial Regulatory Agencies Issue Final Statement on Subprime Mortgage Lending. [PDF]

Posted in mortgage.

[ Via Floyd Norris]


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