ultimately lead to higher payments. just as with credit cards, however, disclosing a consumer's repayment obligation and the cost of the credit is more complex when there are unknowns – such as the future rate if it may vary based on an index, the amount of the consumer's monthly payment, and the possibility of negative amortization. when the board reviews mortgage disclosures, it will consider these developments and conduct extensive consumer testing to determine how the features and risks of today's mortgage products can be communicated effectively. the board has already taken some initial steps in its review of mortgage disclosures. last summer, the board held a series of four public hearings on home - equity lending, where we gathered views on the impact of federal and state predatory lending laws and on the adequacy of mortgage disclosures, particularly those concerning nontraditional mortgage products. following those hearings, the board revised the consumer handbook that creditors are required to provide with applications for all arms. the revised handbook gives consumers a better explanation of the features and risks of nontraditional arms, especially " payment shock " and the risk of increasing loan balances, also known as " negative amortization. " the recent problems in the subprime mortgage market have prompted the board to hold a fifth hearing, which i will chair tomorrow, here in washington, d. c. the purpose of the hearing is to gather information to evaluate how the federal reserve might use its rulemaking authority to curb abusive lending practices in the subprime mortgage market in a way that also preserves incentives for responsible lenders. specifically, hearing participants will discuss concerns about prepayment penalties, escrows for taxes and insurance, " stated - income " loans, and lenders'standards for determining that consumers can afford to make the scheduled payments. some of these concerns may call for more effective disclosures. however, we will also seriously consider whether there are mortgage lending practices that should be prohibited under hoepa. we must be careful, however, not to curtail responsible subprime lending or beneficial financing options for consumers. a robust and responsible subprime mortgage market benefits consumers by allowing borrowers with non - prime or limited credit histories to become homeowners, access the equity in their homes, or have the flexibility to refinance their loans as needed. under hoepa, lenders are subject not only to regulatory enforcement actions but also to private lawsuits to redress violations. thus, any

. the attitudinal and structural changes needed for economic transformation are still very much lacking. this is traceable to the manifestations of structural rigidities occasioned by the apparent weak linkages existing among the primary, secondary and the tertiary sectors of the economy. the huge foreign exchange inflows from oil have also not been effectively harnessed to ensure a comprehensive diversification of the economy. 20. third, the economy is faced with widespread dilapidated and dysfunctional economic and social infrastructure. this has hindered the growth of the economy, and was the result of decades of neglects, weak technological base and poor maintenance culture over the years. it is also a reflection of the low research and development efforts on the part of the government. 21. fourth, corruption has become endemic and has continued to ravage the entire strata of the society. in fact, corruption is a direct result of the weak leadership, poor value and reward system in the country. according to the transparency international 2012, nigeria ’ s position in the corruption perception index for 2011 was 143 out of a total of 183 countries with a score of 2. 4 / 10, which clearly reveals nigeria as one of the most corrupt countries in the world. 22. fifth, the menace of weak governance constitutes a serious challenge to the various efforts and reforms meant to achieve economic growth for sustainable development. thus, the prevalence of weak institutions, poor governance as well as poor ethical standards in most public and private organizations, constrain the realization of economic policy objectives of the government. the effect of all these have permeated the country ’ s regulation and law enforcement, rendering them ineffective. 23. sixth, is the environmental factor, particularly the weak investment climate, owing to the legal and institutional challenges as well as the spate of insecurity, which has continued to constrain massive flow of investment in the key potential wealth - creating and employment generating sectors of the economy. 24. finally, policy incoherence and inconsistencies and occasional policy somersault also pose a major constraint to economic development in nigeria. though, government policies, plans and initiatives tend to be laudable, they are most often discontinued with any change in regime. thus, regime changes in the past had often truncated the implementation of good projects and programmes. bis central bankers ’ speeches addressing the leadership challenges : what type is ideal for nigeria? 25. given the various challenges confronting economic performance in the country, one pertinent question to ask