- The two proposed illustrations are intended to assist institutions in providing consumer information as discussed in the Consumer Protection Principles portion of the interagency Subprime Statement.
- The illustrations include a narrative explanation of some of the key features of certain adjustable rate mortgage (ARM) loans identified in the Subprime Statement, and a chart with numerical examples designed to show the potential consequences of payment shock for an ARM loan structured with a discounted interest rate for the first two years.
- Use of the illustrations by institutions is optional.
- The agencies are requesting comment on the usefulness of the two proposed illustrations to institutions considering implementing the consumer protection portion of the Subprime Statement.
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer; Chief Compliance Officer
Statement on Subprime Mortgage Lending; Interagency
Guidelines for Real Estate Lending; Interagency Guidelines
on Subprime Lending; Expanded Examination Guidance
for Subprime Lending Programs; Interagency Guidance on
Nontraditional Mortgage Product Risks; and Unfair and
Deceptive Acts and Practices by State-Chartered Banks
Proposed Illustrations - PDF Help
Victoria Pawelski, Policy Analyst, at firstname.lastname@example.org or
(202) 898-3571; Mira Marshall, Acting Chief, CRA/Fair
Lending Section, at email@example.com or (202) 898-3912;
or Richard Foley, Counsel, at firstname.lastname@example.org or (202) 898-3784
FIL-67-2007 - PDF 34k (PDF Help)
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275-3342 or 703-562-2200).