On 1 July 2014, the Federal Reserve Board, the FDIC, the OCC, the National Credit Union Administration and the Conference of State Bank Supervisors issued guidance regarding home equity lines of credit (“HELOCs”) which were nearing their “end-of-draw” periods, which refers to that time when the principal amount of the HELOC must begin to be repaid. The guidance encourages financial institutions to communicate with borrowers ahead of the pending reset and provides broad principles to manage risk as HELOCs reach their end-of-draw periods. The guidance also discusses the appropriate accounting and reporting procedures for HELOCs nearing their end-of-draw periods.

The full text of the interagency guidance is available at: http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20140701a1.pdf.