Fed Proposes New Mortgage Rules Aimed at Stemming Shady Practices

Fed Proposes New Mortgage Rules Aimed at Stemming Shady Practices

online.wsj.com

WASHINGTON -- The Federal Reserve on Tuesday is set to consider a plan that would mark the central bank's biggest regulatory response to date of the country's mortgage turmoil.

The staff proposal under review would curb the types of subprime products lenders can offer, prohibit certain misleading disclosures, and limit the compensation of mortgage brokers.

(visit the link for the full news article)

I know there has been heated debated on ATS in regards to people getting in over their heads with mortgages, because they were led by shady loan practices.

Now the Feds are addressing the issue.

I wonder if this will help at all? Thoughts?

online.wsj.com
(visit the link for the full news article)

reply to post by Realtruth


My thoughts are first that I have seen this go both ways. Right now certain people are screaming that something needs to be done about the banks shady loan practices. When the housing market goes the other way and people are screaming they can't get a loan for a house the banks will get the fed to relax the loan rules.
I do think the banks are crooks. But they also control the money. And that will mean in the end they will get what they want no matter who is screaming.

Originally posted by RedGolem
reply to post by Realtruth

 

I do think the banks are crooks. But they also control the money. And that will mean in the end they will get what they want no matter who is screaming.

I don't like to see people having to struggle to pay a house off over many years, only to have other hardships pop up along the way and after retirement.

What I see as another crime here in the US is the fact that a senior citizen pays his house off after years of hard work, only to find out he can't afford the taxes when he retires. Many even lose their homes for not being able to afford taxes. The system is flawed.

What really matters in life? It seems money and greed drive everything and compassion is last on the list. And that is not just here in the USA.

reply to post by Realtruth


Real
you pointed out an awful lot of good points in your post. The system is flawed in may ways, taxes I do think is probably on top of the list in many areas.