Outline The Use of Nontraditional Mortgage Products Interagency Guidelines Guidance on Nontraditional Mortgage Products Statement on Subprime Mortgage Lending Predatory Lending Subprime Loans Assessing Risk Adjustable Rate Mortgages (ARMs) How ARMs Work ARM Standardization ARM Disclosures ARM Programs Seller Financing Purchase Money Mortgage Assumption Seller-Sponsored Wraparound Financing Purchase Money Second Mortgage Land Contracts Land Contract with Assumption of an Existing Mortgage Other Forms of Creative Financing Lease/Options Lease/Purchases Equity Exchanges Participation Plans Homebuyer Assistance Programs Learning …

Outline Interest Only Loans Participation Plans Negative Amortization Loans Other ARM Provisions Structured Mortgages Reverse Mortgages Construction Financing Learning Objectives       Demonstrate knowledge of interest only loans       Identify characteristics of negative amortization loans       Identify and define other provisions of ARMS       Understand other type of loans              Learn calculations for ARM interest rate and payment adjustments       Understand how consumers can be harmed by products …