|Pilot Project Aims to Improve Subprime Lending Supervision
To help monitor subprime mortgage lenders' compliance with consumer protection regulations, three federal agencies and two associations of state regulators will jointly conduct a pilot program that will evaluate and assess the lending practices of some nondepository lenders with large subprime mortgage operations.
Seeking to ensure compliance with protections
The agencies involved include the Federal Reserve Board of Governors, the Office of Thrift Supervision, the Federal Trade Commission, and state agencies represented by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.
Agencies will collaborate on reviews, investigations
Through cooperation, program participants intend to find better ways to ensure effective, consistent reviews of these institutions. At the end of the pilot program's reviews, the agencies will study the results and determine whether the project will continue.
July 24, 2007