According to the SAFE Act, a nontraditional mortgage loan is any loan product other than a 30-year, fixed-rate mortgage. Interest-only mortgage loans are specifically mentioned as an example of nontraditional loans.
“The term ‘nontraditional mortgage product’ means any mortgage product other than a thirty-year fixed-rate mortgage.”
— SAFE Act, 12 U.S.C. § 5102(7)
[References:, , SAFE Act, 12 U.S.C. § 5102(7), , SAFE MLO National Test Study Guide, , ===========, , ]
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