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Nontraditional Mortgage Product
Illustrations of Consumer Information
These nontraditional mortgage product illustrations were developed by the Federal
Financial Institutions Examination Council to assist institutions in implementing
the consumer information recommendations of the Interagency Guidance on Nontraditional
Mortgage Product Risk. Credit unions may utilize these illustrations to provide
consumers with information that is designed to help them make informed decisions
when selecting and using nontraditional mortgage products.
Exhibit 1- Important Facts About Interest-Only and Payment Option Mortgages.
This illustration provides written narrative explaining the features of Interest-Only
and Payment Option Mortgages.(English/Spanish)
Exhibit 2- Sample Mortgage Comparison. This mortgage payment table can be used with
sample loan amounts to help demonstrate the potential payment shock in Interest-Only
and Payment Option ARMs. (English/Spanish)
Exhibit 3- Monthly Payment Options. This illustration can be utilized to demonstrate
the potential for negative amortization in Payment Option loans. (English/Spanish)