TO: |
Chief
Executive Officers and Compliance Officers of All National Banks, Department and Division Heads, and All Examining Personnel
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On June 8, 2007, the Office of the
Comptroller of the Currency (OCC), along with 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 jointly published in the Federal
Register final guidance entitled “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). See OCC Bulletin 2006-41 (October 4, 2006).
The illustrations are intended to show the type of consumer
disclosures that the interagency guidance contemplates for
interest-only loans and payment option adjustable-rate mortgage
products. Institutions may, at their option, elect to use or not use
the illustrations, or to provide information based on the
illustrations, but tailor the information, as appropriate.
The three illustrations show how important information about
nontraditional mortgages could be provided to consumers in a concise
manner and format. The first 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. Finally, the third illustration contains explanatory
information that could be provided with a monthly statement.
To facilitate use of these illustrations by
national banks, the OCC has: posted the illustrations on its Web
site in a form that may be easily downloaded and printed; posted
a template for Illustration No. 2 that may be
downloaded and modified to reflect, for example, current market conditions;
and posted a Spanish language version of the
illustrations.
The illustrations may be obtained from the following Web site
address: http://www.occ.treas.gov/ftp/release/2007-68.htm.
If you have any questions about the illustrations, please contact
the Community and Consumer Law Division at (202) 874-5750.
/signed/
Emory
W. Rushton
Senior Deputy Comptroller
and Chief National Bank Examiner
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Attachment – Final Guidance http://www.occ.treas.gov/fr/fedregister/72fr31825.pdf
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