Industry News

Fed to hold meeting on home equity lending

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The Federal Reserve Board on Monday invited consumers, consumer advocacy organizations, lenders and others to participate in four public hearings on the home equity lending market. The Board is holding the hearings under the Home Ownership and Equity Protection Act, or HOEPA, which was enacted in 1994 in response to reports of predatory home equity lending practices in underserved markets, the Federal Reserve Board said. The Board's 2006 hearings will focus on three topics: (1) predatory lending and the impact of the HOEPA rules, and state and local anti-predatory lending laws on the subprime market; (2) nontraditional mortgage products such as interest-only mortgage loans and payment option adjustable rate mortgages, and reverse mortgages; and (3) how consumers select lenders and mortgage products in the subprime mortgage market. HOEPA amended the Truth in Lending Act (TILA) to impose additional disclosure requirements and limits on certain high-cost, home-secured loans. HOEPA also ...