OTS Initiates Rulemaking to Prevent Unfair and Deceptive Acts or Practices by Savings Associations

On August 3, 2007, the Office of Thrift Supervision (OTS) released an advance notice of proposed rulemaking (ANPR) asking for public comment on whether and, if so, to what extent it should adopt additional regulations to ensure fair treatment of customers of OTS-regulated thrifts and other entities. OTS regulates federal savings associations, their holding companies, and their affiliates.

OTS and the Federal Reserve Board (Fed), but not the other bank regulators, have authority under the Federal Trade Commission (FTC) Act to issue regulations to prevent unfair or deceptive acts or practices. The scope of this authority is broad and covers not only mortgage lending but other activities of savings associations and other OTS-regulated entities. The Fed has announced its intention to issue regulations to prevent unfair and deceptive acts and practices in the mortgage market under the Home Ownership and Equity Protection Act of 1994. The OTS action could prod the Fed to use its FTC Act authority as well.

NAR plans to submit comments to the OTS, consistent with NAR’s policy supporting strong legislation and regulations to prevent subprime lending abuses, by the early November deadline.

Read the OTS ANPR

Lynn King 202-383-1156, Jeff Lischer 202-383-1117