In some cases, borrowers may not have fully understood the details of their loans, including the potential for large payment increases. Federal Reserve responses Effective responses need to build on an informed understanding of this complex picture.
Thus, as these problems in housing emerged and deepened, the Federal Reserve System engaged with a wide array of market participants--including lenders, community groups, servicers, consumer advocates, public officials, and other regulators--to properly diagnose the problems and work toward sustainable solutions.