Comment calls and final rules

CUNA
October 18, 2006

One regulatory comment call and two final rules that may be of interest to you and your colleagues are listed below. After the summaries you will find a link to the complete text. Your council’s regulatory committee encourages you to review these comment calls and final rules and submit your comments where requested.

Comment Call – Comments due by November 27, 2006

Proposed Disclosures for Nontraditional Loans

The Federal financial institution regulators have requested comments on proposed disclosures, or illustrations, that financial institutions can provide to borrowers who are considering nontraditional loans. These include “interest only” mortgages in which the borrower has the option to pay no principal for a fixed period of time and “payment option” adjustable-rate mortgages in which the borrower has flexible payment options, including the option to pay less than the interest owed, resulting in negative amortization.

These illustrations are intended to assist institutions in implementing the consumer protection provisions of the Interagency Guidance on Nontraditional Mortgage Products Risks (Guidance), which was recently issued in final form. Although the Guidance 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 Guidance. Attached is CUNA's Regulatory Comment Call, which provides additional information.

Comments on these proposed disclosures will be due by December 4, 2006. Please submit your comments to CUNA by November 27, 2006.

For the complete text of CUNA’s Comment ball go to: http://www.cuna.org/reg_advocacy/reg_call/rcc_100906.html

For the complete text of this comment call go to:

http://www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/FINAL-FR-Consumer-Illustrations-092806.pdf