Circular
Final Illustrations of Consumer Information Issued for Hybrid Adjustable-Rate Mortgage Products
May 22, 2008
Circular No. 11956

The federal financial regulatory agencies have issued final illustrations for helping consumers understand certain hybrid adjustable-rate mortgage (ARM) products.

The agencies' Statement on Subprime Mortgage Lending, which became effective July 10, 2007, recommended that institutions provide clear, balanced and timely information to consumers about the relative benefits and risks of hybrid ARM products. The illustrations are intended to assist institutions in providing this information.

Institutions are not required to use the illustrations.  They may use them, provide information based on them or provide consumers with information described in the guidance in an alternate format.

The agencies will be posting the illustrations on their websites for downloading and printing.

See the press release for full details.

Press release OFFSITE