The nation's top banks will all continue making interest-only mortgages—primarily to wealthy borrowers—even though such loans do not conform to new mortgage regulations that take effect this week.

The Consumer Financial Protection Bureau's qualified mortgage rule that goes into effect Friday requires that lenders document a borrower's ability to repay a loan. But interest-only loans are excluded from being considered ultra-safe "qualified mortgages" because borrowers often face payment shock once they are required to start paying principal, typically after five to seven years of paying just interest.

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