Proposed Disclosures for Subprime Mortgage Loans

CUNA
September 14, 2007 | COMMENTS

The Federal financial institution regulators have requested comments on proposed disclosures, or illustrations, that financial institutions can provide to borrowers who are considering subprime loans.

These illustrations are intended to assist institutions in implementing the consumer protection provisions of the Statement on Subprime Mortgage Lending (Statement), which was recently issued. The Statement addresses risks and other issues relating to subprime mortgage lending practices, specifically for adjustable-rate mortgage (ARMs) loans. Click here for more information.

Although the Statement outlines the type of information that should be provided to consumers, the use of these specific disclosures will not be required. They are only intended to serve as illustrations of the information described in the Statement.

Comments on these proposed disclosures will be due by October 15, 2007. Please submit your comments to CUNA by October 3, 2007.

Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Senior Vice President and Deputy General Counsel Mary Dunn at mdunn@cuna.com and to Senior Assistant General Counsel Jeff Bloch at jbloch@cuna.com; or mail them to Mary and Jeff in c/o CUNA's Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, DC 20004-2601. You may also contact us at 800-356-9655, ext. 6032, if you would like a copy of the proposal, or you may access it on the Internet here.

This is the executive summary of the comment call - click here for the full text.