In an effort to facilitate community revitalization, the Office of the Comptroller of the Currency recently issued a bulletin providing guidance on responsible mortgage lending in targeted areas with particularly high loan-to-value (LTV) ratios.
The bulletin interprets existing regulations and sets principles for managing risks that certain national banks and federal savings associations face when establishing programs for originating owner-occupied residential mortgage loans with LTV ratios that exceed 100 percent.
Make sure you are informed about what financial institutions should be cognizant of regarding this guidance.