Buy this domain.
Rule Against Shady Lending Practices Eyed in Wake of Mortgage Crisis | 24-7-news.com cialis online

Rule Against Shady Lending Practices Eyed in Wake of Mortgage Crisis

AddThis Social Bookmark Button

The mortgage crisis has prompted federal regulators to consider new consumer fraud rules to protect people from unscrupulous home loans.  The Federal Reserve—which maintains regulatory powers over the nation’s banking system—unveiled a proposal today that would allow those taking home mortgages new protections against shady lending practices.  According to Fed Chairman Ben Bernake, “Unfair and deceptive acts and practices hurt not just borrowers and their families, but entire communities, and indeed, the economy as a whole.  They have no place in our mortgage system.”  The proposed rules are expected to be endorsed by the Fed at its morning meeting and are geared to the riskiest sub-prime borrowers—those with tarnished credit or low incomes—already suffering from current housing and credit debacles.  The proposal is expected to apply to new or future loans made by all lenders, including banks and brokers and could be finalized next year.

The Fed is considering a variety of strategies such as to restrict lenders from penalizing certain sub-prime borrowers 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 prior to any possible payment increase.  They would also force lenders to ensure sub-prime borrowers set aside money to pay for taxes and insurance, bar lenders from making loans when they don’t have proof or verification of a borrower’s income, and prohibit lenders from lending without considering a borrower’s ability to repay a home loan from sources other than the home’s value.

Fed policymakers are also considering requiring financial disclosures be given to borrowers early enough to use when mortgage shopping; lenders could not charge fees, except to obtain a credit report, until after the consumer receives disclosures.  The Fed may also prohibit certain types of misleading or deceptive advertising for certain loans and require all applicable rates or payments be disclosed in ads with equal prominence and as advertised, introductory rates.  The plan may also include barring lenders from paying mortgage brokers a broker fee exceeding the amount agreed to by the borrower in advance and banning certain practices, such as failing to credit a mortgage payment to a borrower’s account when the company servicing the mortgage receives it and prohibiting a broker or other company from encouraging appraisers to misrepresent a home’s value.  Before taking effect, the rules must be voted following a period of public comment.

The Fed’s response has taken on heightened importance given the serious issues in the housing and credit markets leading to record numbers of foreclosures and increasing the likelihood of a recession.

Critics have complained that Bernanke’s predecessor Alan Greenspan failed to act as a forceful regulator, especially during the 2001-2005 housing boom, where easy credit spurred many sub-prime home loans and exotic mortgages.  When the housing market went bust, sub-prime loans were hit hardest.  Of the nearly three million sub-prime adjustable-rate loans surveyed by the Mortgage Bankers Association, a record 4.72 % went into foreclosure and 18.81 % were past due.  When home values weakened, borrowers were left with loan balances exceeding home values and with much higher interest rates when loans reset.

« »

Leave a Reply

You must be logged in to post a comment.

NEWS CATEGORIES

GOVERNMENT NOTICES

ARCHIVES


Defective Johnson & Johnson Depuy ASR Hip Implants

The Johnson & Johnson Depuy ASR Hip Implant is suppose to last 15 years, but can fail in only a few years after surgery. Victims with faulty hip implants endure excruciating pain, pain in the groin, death of tissue in the hip joint and loss of surrounding bone. GET ALL THE FACTS NOW! CLICK HERE!
defective-hip-replacement.com

CAT Scans Radiation Exposure

If you had a CT or CAT scan and now have a band of missing hair, skin reddening or any other problems possibly related to a radiation overdose, you may have been exposed to much radiation due to incorrect settings on these machines. CONTACT US TODAY!
CAT-Scans-Radiation-Exposure.com

Water Contamination From Fracking

Hydraulic Fracturing of Fracking a way to extract natural gas from shale is contaminating water supplies across the country. Get the facts to keep your drinking water safe for your family.
WaterContaminationFrom Fracking.com

Overexposure to PCBs

Many people unknowingly have been exposed to high levels of PCBs. Recently 3 schools in NY City were found to have dangerous levels of PCBs throughout. Many workers for Monsanto, General Electric, and Westinghouse were exposed to high levels of PCBs. PCBs are a dangerous toxic substance that doesn't break down easily and can cause chloracne, bleeding and neurological disorders, liver damage, spontaneous abortions, malformed babies, cancer, and death. GET THE FACTS!
Overexposure to PCBs.com

Great Photography

Tallis Photo, the number one photographer for great corporate, wedding, and special occasion photos. CONTACT US TODAY!
TallisPhoto.com

Poligrip Lawsuit

Super Poligrip or Fixodent May Cause Nerve Damage. 800-LAW-INFO
Poligrip-Lawsuit.com

Personal Injury Lawyer Nassau County

If you or someone you love was injured CONTACT US TODAY!
Nassau-Personal-Injury-Lawyer-Online.com

Nursing Home Blog

When a loved one is abused at a nursing home, it is time to take action. STOP nursing home abuse!
nursing-home-blog.com

Car Accident Lawyer Nassau County

If you or someone you love was injured in an auto accident CONTACT US TODAY!
www.nassau-car-accident-lawyer-online.com

Suffolk County Auto Accident Lawyer

If you or someone you love was injured in an auto accident in Suffolk County, NY CONTACT US TODAY!
www.suffolk-car-accident-lawyer-online.com

Don't Be Denied Veterans Benefits

If you or someone you love was denied veterans benefits CONTACT US TODAY!
www.veterans-benefits-denial.com

Oil Rig Spills Lawyer

Oil Rig Spills harm the environment and cause heavy losses to coastal game and fishing industries, as well as a loss of waterway usage, resulting in a loss of income to individuals and businesses, and a loss of beach front usage. Don't let a spill cause you harm, CONTACT US TODAY!
www.oil-rig-spills.com

Whistle Blower

Stand up and say what you think is right. See something, say something.
whistlebloweradvisor.com