Summary: | The federal financial regulatory agencies have issued the attached Statement on Subprime Mortgage Lending that addresses issues relating to certain adjustable-rate mortgage (ARM) products that can cause payment shock. The Statement establishes prudent safety and soundness and consumer protection standards that should be followed to ensure that consumers, especially subprime borrowers, obtain loans they can afford to repay and receive information that adequately describes product features. |
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To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html . Paper copies of FDIC financial institution letters may be obtained from the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).
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Additional Related Topics:
- 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