The nation’s primary regulator of national banks has clarified lending practices for financial institutions that make residential loans with high loan-to-value ratios in struggling areas.

In some distressed communities, there is concern that depressed housing values are inhibiting mortgage lending and limiting the speed of recovery.

But banks are in a position to support revitalization in communities targeted by governmental entities by offering high-LTV products on owner-occupied single-family properties.

Source: Mortgage Daily