Predatory Practices in Home-Equity Lending - Fourth Public Hearing
August 1, 2000
Circular No. 11262

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The following is from a statement by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has announced a fourth public hearing on predatory practices in the home-equity lending market.

The hearing is scheduled from 9 a.m. to 4:30 p.m. on Wednesday, August 16, 2000, at the Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, IL. The Board previously announced hearings on July 27 in Charlotte, NC; August 4 in Boston, MA, and September 7 in San Francisco, CA.

Invited speakers will participate in panel discussions focused on approaches the Board might take in using its rule-writing authority to curb predatory practices in home-equity lending while preserving access to credit for borrowers with less-than-perfect credit ratings. Time will be reserved after the panel discussions for brief statements from other interested parties.

The hearings are being conducted under the authority of the Home Ownership Equity Protection Act of 1994 (HOEPA), which imposes disclosure requirements and other limits on certain high-cost, home-secured loans. The Board is authorized to make some adjustments to HOEPA's high-cost triggers that could affect the scope of the act's coverage. The Board is also directed by HOEPA to prohibit certain acts and practices in connection with mortgage loans if the Board makes the findings required by the statute.

The hearings will commence with panel discussions by invited speakers, which will be followed by an "open-mike" period of about two hours, starting at approximately 2:30 p.m., to permit other interested parties to participate with brief oral statements of 5 minutes or less. Written statements of any length may be submitted for the record. To facilitate planning for this part of the hearing, anyone interested in presenting an oral statement is asked to contact the Board in advance of the hearing by calling (202) 452-3667.

Written comments, due by September 1, 2000, may be mailed to Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W., Washington, D.C. 20551 or mailed electronically to

The Board's official notice (pdf - 135kb), as published in the Federal Register of July 24, is available.