Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official. 
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
Https
The site is secure. 
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
INACTIVE
This page is no longer active. Its content has expired or been rescinded by the FDIC.

Nontraditional Mortgage Products Interagency Proposed Illustrations of Consumer Information for Nontraditional Mortgage Products

Consumer Protection
October 5, 2006


Summary: The federal financial regulatory agencies are seeking comment on the attached proposed Illustrations of Consumer Information for Nontraditional Mortgage Product Risks (the illustrations). The illustrations are intended to assist institutions in implementing the consumer protection portion of the Interagency Guidance on Nontraditional Mortgage Product Risks (NTM Guidance), which is being published simultaneously with this request for comment. Comments are due by December 4, 2006.

Highlights:
  • The illustrations are not intended as model forms, and institutions will not be required to use them. Rather, they have been provided in response to requests for examples of the type of information that lenders should communicate to consumers pursuant to the Interagency Guidance.
  • The agencies request comment on all aspects of these illustrations. We encourage specific comment on whether they would be useful as proposed, or whether changes are needed to make them useful, both to institutions seeking to implement the NTM Guidance, and to consumers seeking to understand the risks and material terms of nontraditional mortgage products.
  • The agencies also request comment on whether there are other illustrations that would be useful to institutions or consumers.
  • The agencies also invite commenters to provide information about any consumer testing they have conducted in connection with similar disclosures.

Distribution:
FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer
Chief Loan Officer
Chief Compliance Officer

Note:
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2006/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies of FDIC financial institution letters may be obtained via the FDIC's Public Information Center (1-877-275-3342 or 703-562-2200).


Attachment(s)
Unfair and Deceptive Acts and Practices by State-Chartered Banks
Proposed Illustrations of Consumer Information for Nontraditional Mortgage Products

Last Updated: October 5, 2006