The Office of Comptroller of the Currency (OCC) hopes to issue guidance by the end of the year to help banks manage the risk of originating reverse mortgages said Ann Jaed, Deputy Comptroller for Compliance Operations at the OCC during an interview with the National Reverse Mortgage Lenders Association.
Before becoming final, the guidance will be published in the Federal Register and the OCC will seek public comment.
During the interview, Jaed added that the OCC is working with other banking agencies to build a data source for the types of reverse mortgages banks are offering to consumers.
The data source will be derived from the call reports which banks are required to file with federal regulators. According to a notice from the Office of Thrift Supervision (OTS) earlier this year, the agencies plan to collect reverse mortgage data on an annual basis beginning December 31, 2010.
According to the OTS, the agencies hope the data will provide the necessary information for policy development and the management of risk exposures posed by institutions’ involvement with reverse mortgages.
