DEPARTMENT OF STATE

                                             Office of the State Bank Commissioner

                           Statutory Authority:  5 Delaware Code, Section 121(b)

                            (5 Del.C. §121(b))

                                          5 DE Admin.Code § 2106/2208

Notice Of Proposed Adoption Of A Regulation Of The

State Bank Commissioner

Summary

The State Bank Commissioner proposes to adopt new Regulation 2106/2208 (“Guidance on Nontraditional Mortgage Product Risks”).  This proposed regulation parallels a Guidance jointly issued by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation,  the Office of Thrift Supervision and the National Credit Union Administration, and is being adopted to provide regulatory consistency between mortgage brokers and mortgage lenders regulated under Chapters 21 and 22 respectively of Title 5 of the Delaware Code that are not affiliated with a bank holding company or an insured financial institution, and the financial institutions that are subject to that federal Guidance.  The State Bank Commissioner would adopt the proposed new Regulation 2106/2208 on or after June 6, 2007.  Other regulations issued by the State Bank Commissioner are not affected by this proposal.  The State Bank Commissioner is issuing this regulation in accordance with Title 5 of the Delaware Code.

Comments

A copy of the proposed new regulation is published in the Delaware Register of Regulations.  A copy is also on file in the Office of the State Bank Commissioner, 555 E. Loockerman Street, Suite 210, Dover, DE  19901 and is available for inspection during regular office hours.  Copies are available upon request.

Interested parties are invited to comment or submit written suggestions, data, briefs or other materials to the Office of the State Bank Commissioner as to whether this proposed new regulation should be adopted, rejected or modified.  Written materials submitted will be available for inspection at the above address.  Comments must be received at or before the public hearing scheduled for 10:00 a.m. June 6, 2007.

Public Hearing

A public hearing on the proposed regulation will be held in the Office of the State Bank Commissioner, 555 E. Loockerman Street, Suite 210, Dover, DE  19901 on Wednesday June 6, 2007, commencing at 10:00 a.m.  This notice is issued pursuant to the requirements of Subchapter III of Chapter 11 and Chapter 101 of Title 29 of the Delaware Code.