Truth in Lending — 1997-04-29 [97-11041]

The Board will hold public hearings on home-equity lending, and invites consumers, consumer advocacy organizations, lenders, and other interested parties to attend and to provide written comments on relevant issues. The hearings are required by the Home Ownership Equity Protection Act of 1994, which amended the Truth in Lending Act to impose additional disclosure requirements and substantive limitations on certain closed-end mortgage loans bearing rates or fees above a certain percentage or amount. The act directs the Board to examine the home-equity loan market and the adequacy of existing Truth in Lending provisions in protecting the interests of consumers. The Board will also use the hearings to examine broader Truth in Lending issues, primarily on how the finance charge could more accurately reflect the cost of consumer credit. In the Truth in Lending Act Amendments of 1995, the Congress directed the Board to study the finance charge issue.