Mortgage Lending Rules
In July 2008, the Fed finalized new rules that apply to mortgage lenders. Fed Chairman Ben Bernanke stated that the rules "prohibit lenders from making higher-priced loans without due regard for consumers' ability to make the scheduled payments and require lenders to verify the income and assets on which they rely when making the credit decision. Also, for higher-priced loans, lenders now will be required to establish escrow accounts so that property taxes and insurance costs will be included in consumers' regular monthly payments...Other measures address the coercion of appraisers, servicer practices, and other issues. We believe the new rules will help to restore confidence in the mortgage market."
Read more about this topic: Federal Reserve Responses To The Subprime Crisis
Famous quotes containing the words mortgage, lending and/or rules:
“Loosened from the minor’s tether;
Free to mortgage or to sell,
Wild as wind, and light as feather
Bid the slaves of thrift farewell.”
—Samuel Johnson (1709–1784)
“And lending it one mental fillip the more, the fact that all these people were inwardly attacked by well-nigh resistless decay, and that most of them were feverish.”
—Thomas Mann (1875–1955)
“However diligent she may be, however dedicated, no mother can escape the larger influences of culture, biology, fate . . . until we can actually live in a society where mothers and children genuinely matter, ours is an essentially powerless responsibility. Mothers carry out most of the work orders, but most of the rules governing our lives are shaped by outside influences.”
—Mary Kay Blakely (20th century)