Industry News

Feds, states to coordinate reviews of subprime lenders

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Federal regulators will coordinate with state agencies to police subprime lenders, including subsidiaries of banks and thrift holding companies and the mortgage brokers they work with. Under a pilot program announced Tuesday, the Federal Reserve, the Office of Thrift Supervision and the Office of Thrift Supervision will evaluate nondepository lenders' underwriting and risk-management practices for compliance with federal consumer-protection regulations and laws. The laws include the Home Mortgage Disclosure Act, the Equal Credit Opportunity Act, the Truth in Lending Act, the Real Estate Settlement Procedures Act, the Federal Trade Commission Act, and the Home Ownership and Equity Protection Act State agencies will conduct coordinated examinations of independent state-licensed subprime lenders and mortgage brokers, sharing information about their reviews and investigations. State agencies collaborating on the program are represented by the Conference of State Bank Supervisors and the A...