The Office of Thrift Supervision is planning to release an advance notice of proposed rulemaking in a few weeks that would define unfair and deceptive lending practices, the agency's deputy director, Scott Polakoff, said Wednesday.
The OTS could use the regulation to classify a wide swath of lending products as unfair or deceptive, but Mr. Polakoff said the industry would be consulted.
"We believe we have a responsibility to talk to our constituent base and say, 'Hey … these are the kinds of things that are unfair and deceptive,' " he told reporters after speaking to a gathering of the New York Bankers Association.
The agency is in the early stages of developing a definition, he said, but would make a recommendation to OTS Director John Reich within two weeks. If he approves, Mr. Polakoff said an advance notice of proposed rulemaking would be issued quickly.
"We think it's our responsibility to put something out quick," he said.
The agency's plans were first reported by Dow Jones Newswires.
