Early in October, we reported that several federal regulatory agencies had gotten together to issue non-traditional mortgage guidelines. An open question at the time was whether these rules, which only applied to federally regulated lenders, would eventually be visited upon their state-regulated counterparts.
As of yesterday, the Conference of State Bank Supervisors has teamed up with the American Association of Residential Mortgage Regulators to release the state version of the regulation, based heavily on the federally-generated original. I will admit that I haven’t heard of either of these organizations, but I’m guessing that they supervise and regulate things, respectively. Although the following quote from the press release would indicate that they don’t exactly rule with an iron fist:
CSBS and AARMR encouraged the state regulatory agencies to adopt the guidance for the organizations they regulate.
Well, at least they’re polite. I’ll keep you posted on what, if anything, comes of this.