Atlanta Fed to Host Public Hearing on Home Equity Lending

For immediate release June 5, 1997

On Thursday, June 5, the Board of Governors of the Federal Reserve System will hold a public hearing at the Federal Reserve Bank of Atlanta, 104 Marietta Street, to examine the effect of the Home Ownership Equity Protection Act (HOEPA) of 1994 on the home equity loan market. The hearing will begin at 8:15 a.m. and is open to the public.

The HOEPA amends the Truth in Lending Act (TILA) to impose new disclosure requirements and substantive limitations on certain closed-end home-equity mortgage loans.

The hearing will focus for much of the day on statements from the public about home-equity lending, as mandated by HOEPA. The remaining portion of the hearing will elicit views about broader Truth in Lending issues that are currently under Board consideration, primarily how the TILA's finance charge disclosure could more accurately reflect the cost of consumer credit. The finance charge issue, including the feasibility of treating as finance charges all costs associated with a credit transaction, will also be discussed.

Contact: Jean Tate 404-498-8035