OCC Seeks More Flex for Bank ARM Indices

The Office of the Comptroller of the Currency is proposing to give national banks more "flexibility" in selecting indices for adjustable-rate mortgages as part of a proposed rule to reduce regulatory burdens and update OCC regulations."Specifically, the amendment permits national banks to use a combination of indices to which changes in the interest rate will be linked, in addition to a single index," the proposed rule says. The agency is also making it easier for national banks to apply to use ARM indices that are not already permissible under OCC rules. The 36-page OCC regulatory relief proposal appeared in the July 3 issue of the Federal Register. It addresses various regulatory areas, including permanent capital, electronic banking, and community development investments. The comment period ends Sept. 4. Separately, the OCC has posted on its website illustrations of consumer information for nontraditional mortgage products in Spanish and English that can be downloaded and printed for easy production. The OCC can be found on the Web at http://www.occ.treas.gov.