U.S. Warns Lenders to Elevate Credit Standards

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00000130-us-warns-lenders-to-elevate-credit-standa/

By Kirstin Downey, Washington Post

Federal banking regulators yesterday warned banks and other lenders to be more selective about who can get home equity loans and lines of credit because rising interest rates may make it harder for people to repay their loans.

Government officials said that while mortgage defaults remain rare, many institutions are loading up on high-risk loans.

They urged lenders to review interest-only loans, which allow borrowers to delay principal payments for years, and “no-doc” loans, which don’t require documenting borrowers’ assets and income. They also suggested that lenders that refuse to do so may find themselves facing heightened federal oversight.

For this complete story, please visit U.S. Warns Lenders to Elevate Credit Standards.

U.S. Warns Lenders to Elevate Credit Standards

Unknown Author

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