OCC 2006-42
OCC Bulletin

    Subject:  Nontraditional Mortgage Products
Description:  Proposed Illustrations of Consumer 
              Information and Request for Comments

       Date:  October 4, 2006

TO:  Chief Executive Officers and Compliance Officer of 
     All National Banks, Department and Division Heads, 
     and All Examining Personnel

On October 4, 2006, 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 (the agencies) jointly published in 
the Federal Register a notice entitled "Proposed 
Illustrations of Consumer Information for Nontraditional
Mortgage Products."  The illustrations are intended to 
assist institutions in implementing the consumer 
protection portion of the Interagency Guidance on 
Nontraditional Mortgage Product Risks (interagency 
guidance), which was also published in the Federal 
Register on October 4, 2006.  See OCC Bulletin 2006-41 
(October 4, 2006).

The illustrations are intended to show the type of 
information that the interagency guidance contemplates. 
However, they are not intended as model forms, and 
institutions will not be required to use them.  
Institutions could elect to use the illustrations or to 
provide information based on the illustrations but tailor
the information as appropriate.

The three illustrations provided in the notice show how 
important information about nontraditional mortgages 
could be provided in a concise manner and format.  The 
first proposed illustration outlines key facts about 
interest-only and payment option mortgages in a narrative
format.  The second illustration contains a chart 
comparing sample mortgage features.  The third 
illustration contains explanatory information that could
be provided with a monthly statement.  

Comments on the proposed illustrations must be submitted
by December 2, 2006.  The agencies are soliciting comment
on all aspects of the proposed illustrations.

If you have any questions about the proposed 
illustrations, please contact Kathryn D. Ray, Special 
Counsel, Community and Consumer Law Division, 
(202) 874-5750; or Gregory Nagel, Credit Risk Specialist,
Credit and Market Risk, (202) 874-5170.



       /signed/
Emory W. Rushton
Senior Deputy Comptroller and Chief National Bank Examiner


Attachment - 71 FR 58672
 [http://www.occ.treas.gov/fr/fedregister/71fr58672.pdf]