Skip Header

Federal Deposit
Insurance Corporation

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

Home > News & Events > Inactive Financial Institution Letters

Inactive Financial Institution Letters

Nontraditional Mortgage Products
Notice of Proposed Interagency Guidance Issued for Public Comment
December 29, 2005

Summary: The federal banking, thrift and credit union regulatory agencies are seeking comment on the attached proposed interagency guidance relating to nontraditional mortgage products. Comments are due by February 27, 2006.

  • The FDIC, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, and the National Credit Union Administration have proposed the attached guidance addressing the potential for heightened risk levels associated with nontraditional mortgage lending and the importance of carefully mitigating those risk exposures.
  • Prudent management of nontraditional mortgage lending programs requires institutions’ increased attention in product development, underwriting, compliance and risk-management functions.
  • The proposed guidance addresses prudent underwriting standards; describes appropriate portfolio and risk-management practices; discusses applicable laws and regulations; and describes recommended practices for communicating with and providing information to consumers.
  • The FDIC encourages institutions that offer nontraditional mortgage products to review the attached Federal Register notice and to comment on their ability to implement the proposed guidance.

FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer
Chief Lending Officer
Compliance Officer

Related Topics:
Real Estate Lending Standards
Consumer Laws
Publishing Requirements

Proposed Interagency Guidance - PDF 89k (PDF Help)

James Leitner, Senior Examination Specialist, Division of Supervision and Consumer Protection (DSC), on (202) 898-6790 or April Breslaw, Chief, Compliance Section, DSC, on (202) 898-6609; or Ruth R. Amberg, Senior Counsel, on (202) 898-3736 or Richard Foley, Counsel, on (202) 898-3784, in the Legal Division

Printable Format:
FIL-129-2005 - PDF 31k (PDF Help)

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, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).

Last Updated 12/29/2005

Skip Footer back to content