In a  report released today, Dominion Bond Rating Service said that the number of state regulators willing to promote guidelines that address the risks associated with the origination of nontraditional mortgage loans is continuing to increase.

Since the recent issuance of the Guidance on Nontraditional Mortgage Product Risks (CSBS-AARMR Guidance), a total of 19 states and the District of Columbia have adopted it or endorsed it. DBRS thinks that acceptance of the CSBS-AARMR Guidance by other states will is going to go on in 2007. This is particularly relevant if adopted by the large coastal states, since affordability and nontraditional mortgage products are teeming in these areas, DBRS analysts said.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.