Fed Reserve's new rules!

By
Real Estate Agent with QUEST REALTY SERVICES

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.

 

Comments (5)

Lania DeMers
Rocky Mountain Realty Co. - Colorado Springs, CO
Broker, Rocky Mountain Realty Co.
I am seeing some of this already Armando! Some of my best low doc and all of the no doc programs I used to get for my investors have disappeared. It's certainly a great time for some people that already HAVE money to make money, but for those who don't, it's a tough market to break into. Keep up the good work!
Dec 10, 2007 05:55 AM
Sean Allen
International Financing Solutions - Fort Myers, FL
International Financing Solutions

hhhhmmm, Rut Roh .....Ain't looking too good.

Sean Allen
The Mortgage Professionals

Dec 10, 2007 05:56 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes
I am not sure what the solution is...but it is not sit back and do nothing!
Dec 10, 2007 06:06 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F
I don't know if it good for the Fed to start passing rules about what can and can't be offered.  It may protect some borrowers, but it also eliminates some mortgage products which in turn prevents some people from buying or refinancing.
Dec 10, 2007 07:12 AM
Armando Rodriguez
QUEST REALTY SERVICES - Orlando, FL
Orlando Homes 4 Sale, Real Estate Broker-GRI

I agree with all your comments.

I know a lot of people that want to buy but the new stricter rules are going to leave them out in the cold!

Dec 10, 2007 02:15 PM

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