The elements relating to consumer protection in the proposed nontraditional mortgage guidance are included because we think addressing these issues is consistent with good risk management. Nontraditional mortgages typically allow borrowers to defer payment of principal and, sometimes, interest. These products include interest-only mortgages and payment option adjustable-rate mortgages (or ARMs), which have been available for many years.
In particular, industrial output has remained stagnant since early last year as a result of the appreciation of the dollar, lower output and investment in the oil sector following the decline in oil prices, and weak global growth.