The Federal Reserve plans to hold a public hearing to examine how the central bank can use its regulatory authority to curb abusive lending practices in the mortgage market.

The Fed said it plans to invite consumer advocacy organizations, banks, and "other interested parties," for the day-long hearing.

"We want to encourage, not limit, mortgage lending by responsible lenders, so it is crucial that any actions the board might take are well calibrated and do not have unintended consequences," says Fed Gov. Randall Droszner, who will chair the hearing.

The hearing will be held June 14 at the Federal Reserve Board at 20^th and C streets, N.W., in Washington, D.C. The board has allotted time in the afternoon to allow other interested parties to speak who have not otherwise received an invitation. Register on the board’s Web site.

Source: Dow Jones International News (05/03/07)