Federal regulators need to do a better job of explaining to prospective borrowers the workings and potential risks of interest-only and other nontraditional mortgages, congressional investigators said Wednesday.
Nontraditional home loans that once were mostly the domain of the wealthy, especially interest-only mortgages and option adjustable-rate mortgages, have exploded in popularity in recent years as people stretched to buy high-priced homes during the real estate boom.
