The following is based on a story found in Realtor Magazine Online, Daily Real Estate News for 7-26-07:
The Federal Reserve is working on writing rules to regulate the mortgage industry more closely, specifically regarding prepayment penalties, escrow accounts, and stated-income loans. Sandra Braunstein, the Fed's director of consumer and community affairs. said the Fed also plans to overhaul the types of disclosures lenders are required to provide borrowers, and it appears deceptive advertising of loan products will also be addressed.
One week ago, Fed Chairman Ben Bernanke told the House Financial Service Committee that the Fed would propose controls on specific mortgage lending practices later this year.
Original Source: Dow Jones International, Damian Paletta (07/25/2007)
Comments(0)