• Print
  • Email

August 13, 2007

States Publish Examination Model for Subprime Lenders 
State financial regulators issued model examination guidelines for state-licensed subprime mortgage lenders and mortgage brokers on July 31. The model by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators will be used by state mortgage regulators for the examination of lenders and brokers that offer subprime and non-traditional mortgage loans to consumers. The model guidelines will enhance consumer protection by providing state regulators with a uniform set of examination tools for conducting examinations under both the Non-traditional Mortgage Product Risks guidance released in 2006 and the Subprime Statement released in July. "This project is a continuation of the states' serious focus on recent events in the mortgage industry. A uniform set of examination standards specifically aimed at riskier lending is one of the primary components of our regulatory platform," said Wyoming State Bank Commissioner Jeff Vogel, who is the current chairman of CSBS. In the coming weeks, CSBS will conduct nationwide training for examiners in the state system to ensure uniformity and consistency in the approach to these complex products.

Board Announces Annual Adjustment of Fee-Based Trigger for Additional Mortgage Loan Disclosures 
In a recent press release, the Board announced that effective Jan. 1, 2008, the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for mortgage loans that bear rates or fees above a certain amount will increase to $561.

Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois 60604-1413, USA. Tel. (312) 322-5322

Copyright © 2018. All rights reserved.

Please review our Privacy Policy | Legal Notices