My Way News - Fed plans new rules to protect future homebuyers: "WASHINGTON (AP) - In an effort to prevent a repeat of the current mortgage mess, Federal Reserve chairman Ben Bernanke says the Fed next week will issue new rules aimed at protecting future homebuyers from dubious lending practices. Bernanke also says the Fed may give squeezed Wall Street firms more time to tap the central bank's emergency loan program. The mortgage rules will crack down on a range of shady lending practices that has burned many of the nation's riskiest 'subprime' borrowers - those with spotty credit or low incomes - who were hardest hit by the housing and credit debacles. The plan would apply to new loans made by thousands of lenders of all types, including banks and brokers. It would restrict lenders from penalizing risky borrowers who pay loans off early, require lenders to make sure these borrowers set aside money to pay for taxes and insurance and bar lenders from making loans without proof of a borrower's income. It also would prohibit lenders from engaging in a pattern or practice of lending without considering a borrower's ability to repay a home loan from sources other than the home's value."
----------
How could lenders have been doing such dumb things in the first place?
No comments:
Post a Comment