Who prepared the CHARM booklet?

The CHARM booklet, which stands for "Consumer Handbook on Adjustable Rate Mortgages," was prepared by the Federal Reserve Board. This booklet is designed to help consumers understand the features and risks associated with adjustable-rate mortgages (ARMs). It provides important information about how ARMs work, including how interest rates are determined and the potential financial implications for borrowers over the life of such loans.

The Federal Reserve Board has a role in consumer protection and financial education, which aligns with the purpose of the CHARM booklet. By providing clear and concise information, the Federal Reserve aims to ensure that borrowers make informed decisions regarding their mortgage options. This is particularly important in the context of adjustable-rate mortgages, which can involve fluctuating interest rates that may impact monthly payments and overall financial stability.

In contrast, while the Consumer Financial Protection Bureau (CFPB), HUD, and FHA are all significant players in the realm of housing and mortgages, they did not produce the CHARM booklet. Each of these organizations has its own focus and set of resources for consumers, but the specific creation of the CHARM booklet falls under the Federal Reserve Board's jurisdiction.