OCC, FRB, FDIC, OTS, NCUA: Proposed Illustrations of Consumer Information for Nontraditional Mortgage Products

Contacts: Compliance staff
Published: 71 Federal Register 58672; October 4, 2006
Comments Due: December 4, 2006
Disposition: Filed

The OCC, FRB, FDIC, OTS, and NCUA have proposed illustrations of consumer disclosures related to Nontraditional Mortgage Products. The agencies intend these illustrations to assist financial institutions in meeting the obligations of the Interagency Guidance on Nontraditional Mortgage Products Risks (Interagency Guidance), which is being published simultaneously. These illustrations are voluntary and not required to be used by financial institutions, nor are they models; the illustrations are provided solely to assist institutions in understanding the type of information which the Interagency Guidance is designed to disclose. The agencies are interested in comments on whether the illustrations would be useful to institutions; whether the illustrations would be useful towards promoting consumer understanding of Nontraditional Mortgage Products; and whether other additional illustrations would be useful to institutions and consumers.

The agencies have also released a draft brochure designed to be given to borrowers to explain the new Interagency Guidance. However, some commentators are concerned that the brochure, which is written at a high-school graduate level, will not appreciably help the consumers that most need help, and therefore will be of little use.

2006 Regulatory Chart
ABA Comment Letter
Federal Register
Final Guidance, June 8, 2007.