Marin Real Estate Pulse

Last Friday, as had been expected, the five federal departments or quasi-agencies charged with overseeing the nation's banking system jointly issued "guidance" to those banks regarding so-called "exotic" or non-traditional mortgages.

The recent popularity of interest only loans and option payment mortgages has raised concerns about their danger to homeowners and questions about how well their intricacies and risks are understood by borrowers. The guidelines also cautioned lenders to safeguard themselves against undue risk.