WASHINGTON — The Fed and the Office of Thrift Supervision have released a revised Consumer Handbook on adjustable-rate mortgages called the CHARM booklet. The new information includes both the features and risks involved with "interest-only" and "payment option" mortgages.

Under the Fed's Regulation Z, which implements the Truth in Lending Act, creditors must provide a copy of the CHARM booklet, or an appropriate substitute, to consumers with every application for an ARM. A notice will be published in the Federal Register informing creditors that they may begin immediately using the revised CHARM booklet, but can continue using their existing stock of CHARM booklets until October 1, 2007. On that date they must then use the revised CHARM booklet to comply with Regulation Z.

The CHARM booklet was originally published in 1987 to educate consumers about ARMs. It is available at www.federalreserve.gov/pubs/arms/arms_english.htm. A Spanish version of the revisions is in the works.