Each depositor insured to at least $250,000 per insured bank



Home > News & Events > Press Releases




Press Releases

Joint Release
Office of the Comptroller of the Currency
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of Thrift Supervision
National Credit Union Administration

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.

# # #

Attachment:
http://edocket.access.gpo.gov/2007/pdf/07-3945.pdf - PDF Help

Media Contacts:

OCCDean DeBuck(202)-874-5770
Federal ReserveSusan Stawick(202) 452-2955
FDICDavid Barr(202)-898-6992
NCUACherie Umbel(703)-518-6330
OTSKevin Petrasic(202)-906-6677

FDIC-PR-68-2007




Last Updated 08/14/2007 communications@fdic.gov