OTS CONDUCTS INQUIRY INTO SUBPRIME PRACTICES.
THE OFFICE OF THRIFT SUPERVISION (OTS), Washington, D.C., has
announced it has begun a full-scale review of its mortgage lending
regulations to determine how they impact the subprime market. OTS has
also issued an official appeal to the public for comment on how it
should approach the issue. Key issues include how extensive predatory
lending in the home mortgage market may be and who exactly is doing it.
OTS will continue to work with other federal regulators on a possible
joint policy statement and other action to curb predatory lending, and
is interested in working with state regulators as well, according to OTS. From a regulatory standpoint, OTS is asking if it should impose
limits on fees, refinancings and rollovers, prepayment penalties,
balloon payments and other features of high-cost loans. It will also
consider requiring some federal savings associations to notify OTS
before making high-cost loans and look into how such a requirement would
apply to state housing creditors. The comment period runs thro ugh July