Recently the Board has focused on helping consumers understand nontraditional mortgage products and ARMs. For example, the Board recently published a consumer education brochure (Interest-Only Mortgage Payments and Payment – Option ARMs – Are They for You?) on interest-only mortgages  BIS Review 65/2007  7  and payment-option ARMs.
This brochure describes the loan terms and risks inherent in such products and alerts borrowers to possible future payment increases. The Board's revised Consumer Handbook on Adjustable Rate Mortgages, which creditors must provide with every ARM application, also seeks to educate consumers about the features and risks of nontraditional mortgage products.