Seal of the Board of Governors of the Federal Reserve System
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.  20551
DIVISION OF BANKING
SUPERVISION AND REGULATION

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

SR 07-6 / CA 07-1
April 17, 2007

TO THE OFFICER IN CHARGE OF SUPERVISION AND APPROPRIATE SUPERVISORY AND EXAMINATIONS STAFF AT EACH FEDERAL RESERVE BANK AND BANKING ORGANIZATIONS SUPERVISED BY THE FEDERAL RESERVE
SUBJECT:  Working with Mortgage Borrowers

On April 17, 2007, the Federal Reserve and the other federal financial institutions regulatory agencies issued the attached staff guidance to encourage supervised institutions to work constructively with homeowners who are financially unable to continue meeting their mortgage payments. Prudent workout arrangements that are consistent with safe and sound lending practices are generally in the long-term best interest of both the financial institution and the borrower.

Federal Reserve Banks are asked to distribute this letter and the accompanying statement to state member banks and bank holding companies and their non-bank subsidiaries, as well as to supervisory and examination staff. If you have any questions concerning the safety and soundness aspects of this guidance, please contact Brian Valenti at (202) 452-3575, Virginia Gibbs at (202) 452-2521, or Sabeth Siddique at (202) 452-3861 in the Board's Division of Banking Supervision and Regulation. For questions related to Community Reinvestment Act consideration and other consumer compliance issues, please contact Phyllis Harwell at (202) 452-3658 and Anjanette Kichline at (202) 785-6054 in the Board's Division of Consumer and Community Affairs.

signed by

Roger T. Cole
Director
Division of Banking Supervision and Regulation
signed by

Sandra F. Braunstein
Director
Division of Consumer and Community Affairs


Attachment:  Statement on Working with Mortgage Borrowers (26 KB PDF)
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency
Office of Thrift Supervision


SR letters | 2007
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Last update: April 18, 2007