Realtor News

**This just in from the California Assoiciation of Realtors**

FED TO ESTABLISH NEW OVERSIGHT PANEL OF SUBPRIME LENDERS

The Federal Reserve Board (FRB) announced July 17 the launch of a new pilot program aimed at strengthening federal and state oversight of subprime mortgage lender practices, as well as the brokers who originate these loans.

The collaborative state/federal program, slated to begin in 2008, will include oversight from the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, The Federal Trade Commission, and state agencies represented by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

According to the FRB, the oversight committee members will conduct regular, targeted compliance reviews of selected non-depository lenders with significant subprime mortgage operations, share information with one another about their reviews and investigations, and make joint recommendations for corrections.