The National Credit Union Administration (the “NCUA”), along with several other Federal Regulatory Agencies, released a new proposal for monitoring and controlling nontraditional mortgages. The NCUA is becoming increasingly concerned about credit risks without proper control. Twice in December 2005 the NCUA has released proposals for limiting these risks – (1) “Third-Party Servicing of Indirect Vehicle Loans” and (2) “Interagency Guidance on Nontraditional Mortgage Products.” As credit unions continue to maintain growth and extend the best products to their members, the NCUA wants credit unions to limit and control their risk. The purpose of this article is to discuss the most recent publication, “Interagency Guidance on Nontraditional Mortgage Products.” Continue reading →