by Calculated Risk on 7/17/2007 11:07:00 AM

From the Conference of State Bank Supervisors (CSBS): State Financial Regulators Issue Joint Statement On Sub-prime Lending For State-Licensed Mortgage Lenders (hat tip James)

The Conference of State Bank Supervisors (CSBS), the American Association of Residential Mortgage Regulators (AARMR), and the National Association of Consumer Credit Administrators (NACCA) today issued a Statement on Sub-prime Lending to state agencies that regulate residential mortgage brokers and companies.

The Statement was developed in response to the federal financial regulatory agencies' Statement on Sub-prime Mortgage Lending that was released June 29. At that time, state regulators endorsed the statement and announced plans to issue a similar statement to cover lenders not regulated by the federal financial regulatory agencies.

The three state regulatory groups encourage the state regulatory agencies to adopt the guidance and issue it for use by their regulated entities.

The state regulatory organizations will be orchestrating a campaign to implement the guidance in all states. The following 26 mortgage regulators have stated they intend to expedite implementation: Alabama, California, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Indiana, Iowa, Kentucky, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, New Hampshire, New York, North Carolina, North Dakota, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington, and Wyoming.

Meanwhile, the CSBS reports that 35 agencies have adopted the Guidance on Nontraditional Mortgage Product Risks issued last year.