On August 14, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the National Credit Union Administration (collectively, the Banking Agencies) issued proposed illustrations of consumer information regarding certain components of subprime mortgages. Subprime mortgage disclosures had recently been discussed in the Banking Agencies’ Joint Statement on Subprime Mortgage Lending effective July 10, 2007, that applies to all banks and their subsidiaries, savings and loan holding companies and their subsidiaries and credit unions (the Joint Statement). The Joint Statement recommended that consumers have “clear, balanced, and timely information about the relative benefits and risks of adjustable rate mortgage products.” The proposed illustrations are meant to assist in the delivery of this information. Notably, use of the proposed illustrations would be voluntary.
Comments on the proposed illustrations are due within 60 days from the date of publication.