by Calculated Risk on 3/29/2006 01:32:00 AM

The extended comment period on the "Interagency Guidance on Nontraditional Mortgage Products" ends March 29, 2006. Currently there are twenty two responses although some are just requesting an extension. Here are some excerpts from the America's Community Bankers response:

We do not believe the Proposed Guidance is necessary because depository institutions already employ sufficient controls to confirm that these necessities are fulfilled.

However, if the Agencies intend to issue a final regulation on alternative mortgage instruments, it should be substantially modified before adoption. We believe that the Proposed Guidance imposes excessive regulatory burdens and restrictions that may impede an insured depository institution from offering the widest array of products available to serve their communities responsibly, without demonstration of a corresponding benefit to consumers.
...
We also believe that it is unreasonable to impose on insured depository institutions restrictive guidelines for alternative products that do not apply to non-regulated brokers and lenders.

I expect more responses to be filed on Wednesday.