Friday, December 21, 2007

Fed endorses rules to curb shady lending

WASHINGTON - The Federal Reserve endorsed new rules Tuesday that would give people taking out home mortgages new protections against shady lending practices.

The proposed rules, approved in a 5-0 vote by the board, are geared to providing safeguards to the riskiest “subprime” borrowers, already painfully stung by the housing and credit debacles.

The proposal is expected to apply to new loans made by all types of lenders, including banks and brokers. The plan could be finalized next year.

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source: msn.com

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