The National Association of Securities Dealers has issued a warning to investors about the risks associated with mortgages having a 100% loan-to-value ratio, also known as pledged-asset mortgages.In an Investor Alert, the NASD noted that customers of brokerage firms offering 100% mortgages can pledge their stocks, bonds, mutual funds, and other securities in lieu of a downpayment for a mortgage. The firms often tout the fact that such mortgages allow investors to avoid private mortgage insurance or liquidating their securities to come up with a downpayment, but they may "overlook, or consign to the fine print," the associated risks, the trade group said. "There 100% mortgages are not suitable for everyone, and investors should approach them with extreme caution," said Mary L. Schapiro, NASD vice chairman and president of regulatory policy and oversight. "Many investors aren't aware of the considerable risks involved. We're especially concerned that they don't understand that the securities they pledge in lieu of a downpayment may be liquidated if the value of those securities drops below a certain level, or if they default on their mortgage." The association can be found online at http://www.nasd.com.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
6h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
9h ago -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
11h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
11h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11