Federal Agencies Issue Final Illustrations of Consumer Information for NonTraditional Mortgage Products
After reviewing comments on proposed illustrations, the OCC, Federal Reserve, OTS, FDIC, and NCUA have issued three final illustrations intended to help institutions implement the consumer protection portion of the Interagency Guidance on Nontraditional Mortgage Product Risks adopted in 2006. A copy and description of the illustrations are available on the Federal Reserve website (link). The use of the illustrations is optional, institutions are free to provide consumer information described in the Interagency Guidance in another manner. Since the illustrations come directly from the regulatory agencies, however, the prudent approach may be to use the illustrations and tailor them to your institution’s circumstances and your customer’s needs. Each of the agencies will post the illustrations on their web sites in a downloadable and printable form. If you have any questions concerning the final illustrations or the implementation of these illustrations at your institution, please contact
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