In OCC Bulletin 2017-28 (dated August 21, 2017 and available at: https://www.occ.gov/news-issuances/bulletins/2017/bulletin-2017-28.html), the Office of the Comptroller of the Currency announced its support for national banks and federal savings associations efforts “to assist in the revitalization, stabilization, or redevelopment . . . of distressed communities through responsible residential mortgage lending.” Among these efforts are those of “offering mortgage products for the purchase of, or the purchase and rehabilitation of, one-to four-unit residential properties,” particularly through high loan-to-value loan programs (as in over 100% LTV).
The OCC sets forth the criteria for such loans offered as a part of a loan program. Among the criteria is one for a notice that a bank will provide which, outlines some key facts concerning having a loan that exceeds the market price of the subject property.
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