BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.  20551

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

CA 09-9

September 21, 2009

TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS

SUBJECT: Revised Interagency Examination Procedures for Regulation Z

The Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council recently approved the attached interagency examination procedures for Regulation Z - Truth in Lending. These revised procedures replace the Regulation Z interagency examination procedures transmitted as part of CA 09-7.

These procedures incorporate those amendments to Regulation Z approved by the Board in July 2008, which become effective on October 1, 2009. Specifically, these amendments protect consumers in the mortgage market from unfair, abusive, or deceptive lending and servicing practices. Among other things, the changes apply protections to a newly defined category of "higher-priced mortgages" that includes virtually all closed-end subprime loans secured by a consumer's principal dwelling.

There will be other amendments to Regulation Z during 2009 and 2010. We will issue corresponding revisions to the Regulation Z interagency examination procedures to reflect these amendments as they are released. If you have any questions, please contact David Evans, Senior Supervisory Consumer Financial Services Analyst, (202) 452-2093, or Paul Robin, Manager, Oversight and Policy, at (202) 452-3140.

Sincerely,
(signed)

Sandra F. Braunstein
Director
Division of Consumer and Community Affairs

Attachment: Revised Regulation Z Interagency Examination Procedures (604 kb PDF)

Supersedes: CA Letter 09-7