Fed Approves New Rules For Mortgage Loans

The Federal Reserve approved new rules for home mortgage loans to protect consumers from questionable lending practices. Most of the new rules apply to subprime owner occupied home loans and go into effect 10-1-09. Two of the best of these new loans are: The lender must verify the borrower’s income and assets the borrower is relying on to pay the mortgage. Lenders to escrow property taxes and homeowner’s insurance on subprime loans. This rule will be phased in during 2010. *To view the full post, please visit the San Diego California real estate blog