Our Real Estate Blog

Key points of Fed plan

December 31st, 2007 9:04 AM by Lehel Szucs

Key points of Fed plan

Highlights of the Federal Reserve's proposal on mortgage loans:

For sub-prime loans:

* Lenders would be barred from making loans without considering the ability of borrowers to repay them.

* Lenders would be required to verify the income and assets of borrowers.

* Prepayment penalties would be restricted to loans that meet certain conditions.

For all loans:

* Written disclosure of bonuses paid to brokers who sell loans to consumers at higher interest rates than they qualify for.

* Lenders and brokers would be barred from coercing or encouraging appraisers to misrepresent the value of a home.

* Lenders would be required to credit a payment when it is received, and to provide a payoff statement within a reasonable period of time.

Source: Federal Reserve

Posted in:General
Posted by Lehel Szucs on December 31st, 2007 9:04 AM

Archives:

Categories:

My Favorite Blogs:

Sites That Link to This Blog: