Fed to Curb Shady Home-lending Practices

BusinessFed to Curb Shady Home-lending PracticesFed to Curb Shady Home-lending PracticesThe Associated PressThe Federal Reserve will issue new rules aimed at protecting future homebuyers from dubious lending practices, its most sweeping response to a housing crisis that has propelled foreclosures to record highs. (July 8)The Federal Reserve will issue new rules next week aimed at protecting future homebuyers from dubious lending practices. The move is the government's most sweeping response to the housing crisis that has propelled foreclosures to record highs. Under the proposal, lenders would be restricted from penalizing risky borrowers who pay loans off early and would be required to make sure these borrowers set aside money to pay for taxes and insurance. It would also bar lenders from making loans without proof of a borrower's income or without considering their ability to repay a loan from sources other than the home's value. The plan would apply to new loans made by thousands of lenders of all types, including banks and brokers. ___ ___, The Associated Press.(****END****)