According to the Associated Press, the Federal Reserve has endorsed new rules that would give people taking out home mortgages new protections against shady lending practices. The Fed proposes:
- Forcing lenders to make sure that subprime borrowers set aside money to pay for taxes and insurance.
- Restricting lenders from penalizing certain subprime borrowers — those with tarnished credit or low incomes — who pay off their loans early. The restriction would apply to loans that meet certain conditions, including that the penalty expire at least 60 days before any possible payment increase.
- Barring lenders from making loans when they don’t have proof of a borrower’s income.
- Prohibiting lenders from engaging in a pattern or practice of lending without considering a borrower’s ability to repay a home loan from sources other than the home’s value.
Watch the Video-->
No comments:
Post a Comment