Commission Provides Federal Reserve Board with Comments on the Home Equity Lending Market; Issues Summary of May 2006 Alternative Mortgage Workshop

Filing of FTC comments with the Federal Reserve Board: The Commission has approved the filing of comments with the Federal Reserve Board on the Board’s recent notice regarding “The Home Equity Lending Market.” The comments, which are based on the FTC’s consumer protection experience in the home equity market, first describe the unfair and deceptive acts and practices uncovered through the Commission’s law enforcement activities. Next, the comments summarize key issues raised at the FTC’s May 2006 workshop regarding alternative mortgage products, Protecting Consumers in the New Mortgage Marketplace, including both the advantages and risks that these market innovations provide consumers. Finally, the comments discuss the importance of informed consumer choice at each stage of the mortgage lending process and the Commission’s research into important, unanswered questions about how best to provide material information that consumers are able to use when making decisions about mortgages.

The vote approving the filing of comments with the Board was 5-0. The comments can be found on the FTC’s Web site, on the Mortgage Workshop page, at www.ftc.gov/bcp/workshops/mortgage/index.html, and as a link to this press release. (FTC File No. P994805; the staff contact is Julie Bush, Bureau of Consumer Protection, 202-326-3608.)

Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.