The Federal reserve is jumping into the sub-prime fray with programs that might rival what Pres Bush and congress are working on.
The Federal Reserve is expected to ban pre-payment penalties, low -doc loans, Alt-A loans and loans that do not collect for the pre-payment of property taxes and insurance premiums as they apply to the sub-prime sector of the market. The new rules would apply to sub-prime loans offered by any lender.
With this action the Fed is exercising the most control it has since Chairman Bernanke started his new post.
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