Updates on Homeowner Resources, Lending Facility Extension Among Recent Federal Reserve Actions
The publication of information for homeowners who have a home equity loan, changes to the Truth in Lending Act, and modification of a liquidity program are among recent actions taken by the Federal Reserve.
- The Federal Reserve has published "5 Tips for Dealing with a Home Equity Line Freeze or Reduction," a brochure that explains consumers' rights and lenders' responsibilities when home equity lines of credit (HELOC) are reduced and provides information for those seeking to have a credit line reinstated.
- The Federal Reserve Board has published its annual adjustment of the dollar amount of fees that triggers additional disclosure requirements under the Truth in Lending Act for home mortgage loans that bear rates or fees above a certain amount. The dollar amount of the fee-based trigger has been adjusted to $579 for 2010 based on the annual percentage change reflected in the Consumer Price Index that was in effect on June 1, 2009.
- The Federal Reserve Board and the U.S. Treasury Department on Monday announced that they approved an extension to the Term Asset-Backed Securities Loan Facility (TALF). At this time the Federal Reserve Board and the Treasury do not anticipate any further additions to the types of collateral that are eligible for the facility. The Federal Reserve and Treasury approved extending TALF loans against newly issued asset-backed securities and legacy commercial mortgage-backed securities (CMBS) through March 31, 2010, and they approved TALF lending against newly issued CMBS through June 30, 2010. The Federal Reserve and Treasury had previously authorized TALF loans through Dec. 31, 2009.
August 31, 2009