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Highlights:
On July 14, 2008, the Board of Governors of the Federal Reserve
(FRB) approved amendments to the closed-end mortgage
provisions of Regulation Z (see
http://edocket.access.gpo.gov/2008/pdf/E8-16500.pdf 565K
(PDF
Help)). The
amended Regulation Z:
- Creates a new category of closed-end mortgage loans -- "higher-priced mortgage loans" -- to which unique consumer protections apply;
- Revises the prepayment penalty provisions for high-cost (section 32) mortgages;
- Prohibits certain servicing practices and the coercion of appraisers for all closed-end mortgage loans secured by a consumer's principal dwelling;
- Identifies and prohibits several misleading or deceptive advertising practices for all closed-end mortgages secured by a dwelling; and
- Extends Regulation Z's early disclosure requirement to transactions involving refinancings and home equity loans secured by a consumer's principal dwelling.
On October 20, 2008, the FRB approved amendments to the
compilation and reporting of loan data provisions of Regulation C
to conform to Regulation Z's definition of higher-priced mortgage
loans (see http://edocket.access.gpo.gov/2008/pdf/E8-25320.pdf (PDF Help)).
Distribution:
FDIC-supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Chief Loan Officer
Chief Compliance Officer
General Counsel
Related Topics:
Truth in Lending Act
Home Ownership and Equity Protection Act
Home Mortgage Disclosure Act
Attachment:
2008 Amendments to Regulation Z and
2008 Conforming Amendments to Regulation C
Contact:
Senior Policy Analyst Glenn S. Gimble at
GGimble@FDIC.gov or (202) 898-6865
Printable Format:
FIL-134-2008 - PDF (PDF Help)
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2008/index.html
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters
may be obtained through the FDIC's Public
Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (1-877-275-3342 or 703-
562-2200).
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