Thursday, March 27, 2008
According to this report in the Associated Press, the Federal Reserve is now bolstering confidence in the mortgage lending market by proposing sweeping new rules:
It also would prohibit 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. The proposal would curtail misleading ads for many types of mortgages and bolster financial disclosures to borrowers.Come on AP, is this really you or were you invaded by writers from The Onion?
"Substantial anecdotal evidence indicates that failing to verify (a borrower's) income invited fraud," said (Fed Governor Randall) Kroszner, who has been the Fed's point person on the consumer protection provisions.