fed speech, 2006-02-02
These mortgage loans, often referred to as 'nontraditional mortgage loans,' include 'interest-only' (IO) mortgage loans, in which a borrower pays no loan principal for the first few years of the loan, and 'payment-option' adjustable-rate mortgages (option ARMs), in which a borrower has flexible payment options--and which also could result in negative amortization.
Sentiment: neutral
Topic: financial_stability