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Board of Governors of the Federal Reserve System
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Federal Reserve Board of Governors

Joint Press Release

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
For immediate release
August 14, 2007

Federal Financial Regulators Propose Illustrations of Consumer Information to Support Their Statement on Subprime Mortgage Lending

The federal financial regulatory agencies today issued proposed illustrations of consumer information for certain adjustable-rate mortgage (ARM) products described in the agenciesí Statement on Subprime Mortgage Lending (Subprime Statement), effective July 10, 2007.  The Subprime Statement recommends communications that ensure consumers have clear, balanced, and timely information about the relative benefits and risks of certain ARM products.  The illustrations are intended to assist institutions in providing this information.  

The illustrations consist of (1) an explanation of some key features and risks that the Subprime Statement identifies, including payment shock, and (2) a chart that shows the potential consequences of payment shock in a concrete, readily understandable manner. 

The agencies seek public comment on all aspects of the proposed illustrations.  Comments are due 60 days after publication in the Federal Register.

The proposed illustrations are attached.

Federal Register Notice 317 KB PDF | TEXT

Media Contacts:
Federal Reserve Board Susan Stawick 202-452-2955
FDIC David Barr 202-898-6992
NCUA Cherie Umbel 703-518-6330
OCC Dean DeBuck 202-874-5770
OTS Kevin Petrasic 202-906-6677
 
Last update: August 14, 2007