FTC Slates Alternative Mortgage Workshop

The Federal Trade Commission will host a workshop May 24 on the benefits and risks associated with interest-only and payment-option mortgages.These nontraditional adjustable-rate mortgage products help some people buy homes that they could not afford with a traditional fixed-rate 30-year mortgage, according to the consumer protection agency. At the same time, IOs and option ARMs may present unexpected risks, such as "payment shock," that consumer don't fully understand, the agency said. FTC staff members will identify and invite panelists to participate in the workshop. "Those interested in participating as panelists must notify the FTC in writing on or before April 2," the agency said.