This excerpt taken from the COF 10-K filed Mar 1, 2007.
Non-Traditional Mortgage Products Guidance
In September 2006, the Federal Financial Institutions Examinations Council (FFIEC) issued new guidance (the Guidance) with respect to non-traditional mortgage products. Non-traditional mortgage products are generally defined as residential mortgage loans that allow borrowers to defer repayment of principal or interest, such as interest-only loans and payment-option adjustable rate mortgages. The Guidance places new restrictions and requirements on the origination and servicing of non-traditional mortgage products, including heightened loan underwriting standards. These restrictions and requirements may adversely affect our mortgage operations.