comment on this proposal, and once we have carefully considered all the input we receive, we will move expeditiously to a final rule. as i noted at the outset, effective consumer protection can help to restore confidence in the mortgage markets and help to preserve the flow of capital to consumers who wish to purchase a home. it is not too early to emphasize that the effectiveness of the final rule will depend critically on effective enforcement. the federal reserve will do its part to ensure compliance among the institutions it supervises. we also have been instrumental in launching a pilot project with other federal and state agencies to conduct consumer compliance reviews of non - depository lenders and other industry participants. i am sure we will be aided in these efforts by a new system for registering and tracking mortgage brokers recently launched by the conference of state bank supervisors. while we work to build effective consumer protections and enforcement regimes for future consumers, we will also continue our efforts, and encourage the initiatives many others are undertaking, to limit unnecessary foreclosures for consumers who are hurting now.

standards are clear for lenders to reduce unintended consequences for consumers. though clear, the standards are intended to be not overly prescriptive, so as to preserve access to responsible credit while amply protecting consumers. our proposal is also comprehensive, covering most mortgage loans with certain protections and the entire subprime market with certain more specific regulations. while comprehensive, the proposal would focus protections where the risks are greatest and preserve consumers'access to responsible credit. our effort to produce robust, clear, and comprehensive rules was based on a rigorous analysis of available qualitative and quantitative data. we have put this proposal out for public comment until april 8 and eagerly seek suggestions to be able to craft the best possible final rule. comprehensive scope let me say more about the comprehensive scope of this proposal. it would apply stricter regulations to higher - priced mortgage loans, which we have defined broadly, and it covers all types of mortgage lenders, unlike guidance that only applies to federally insured banks. we were particularly interested in ensuring that protections remain strong over time as loan products and lending practices change. our analysis of the data suggested that the troubles in the mortgage market generally arise not from a single practice in isolation, but instead from the complex ways that risk factors and underwriting practices can affect each other, sometimes called " risk layering. " therefore, we have proposed using a loan's annual percentage rate, or apr, to determine whether the loan is covered by stricter regulations. 5 because the apr is closely correlated to risk, the proposed protections would cover loans with higher risks rather than single out particular risk factors or underwriting practices. with the apr thresholds we have proposed, we expect that the new protections would cover the entire subprime mortgage market and the riskier end of the " near prime " market, the latter also known as the " alt - a " market. covering part of the alt - a market would anticipate possible actions by lenders to avoid restrictions on subprime loans priced near the threshold. it would also address real risks to consumers in the alt - a segment. this segment grew very rapidly, and it layered risks, such as undocumented income, on top of other risks, such as nontraditional loan structures allowing borrowers to defer paying principal and interest. however, we have heard from commenters who have expressed concern that in the current market environment, the proposed trigger could cover the market too broadly, and we will carefully consider the