- 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
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site at
To receive FILs electronically, please visit
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).