Circular
Request for Comment on Changes to Regulation Z to Protect Consumers from Unfair or Deceptive Home Mortgage Lending
December 18, 2007
Circular No. 11921

The Federal Reserve Board has proposed and asked for public comment on changes to Regulation Z (Truth in Lending) to protect consumers from unfair or deceptive home mortgage lending and advertising practices. The rule, which would be adopted under the Home Ownership and Equity Protection Act (HOEPA), would restrict certain practices and would also require certain mortgage disclosures to be provided earlier in the transaction.

The Home Ownership and Equity Protection Act amended the Truth in Lending Act (TILA). Under HOEPA, the Board has the responsibility to prohibit acts and practices in connection with mortgage loans that it finds to be unfair or deceptive.

The proposal takes into consideration testimony given at four public hearings the Board held in the summer of 2006, and a hearing held in June 2007, as well as public comment letters received in connection with those hearings. The Board also consulted with other federal and state agencies and its own Consumer Advisory Council.

See the press release for full details.

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