Some of the government's new regulations seem bogus to me; just a band-aides to make themselves look good. For example, regulation against prepayment penalties. In the short term that might help some people sell a house in foreclosure. In the long term it forces lenders to use higher interest rates, making it harder for people to buy. HOWEVER - I am definately in favor of adding regulations that encourages trancparency within any transaction that allows borrowers to understand what they are paying for. I remember how shocked I was years ago, when I learned that mortgage brokers were being rewarded by offering me a higher interest rate. I thought they were shopping for ME - trying to get me the lowest rate! I am encouraged to see that this issue has, at least, been recognized by legislators. This should be disclosed to people. Borrowers need to know who is on their side, what choices they have, and where the money is flowing!!! Here is an accompanying article on CNNMoney.com titled, New Fed rules miss one key lending abuse (http://money.cnn.com/2008/07/21/real_estate/mo_ban_on_lending_abuse/index.htm?postversion=2008072309)
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