Fed Adopts Home Buyer Protection Practices
Just in from the AP Wire… “Fed adopts plan to curb shady mortgage practices”
WASHINGTON – The Federal Reserve has adopted rules to give home buyers more protection from the types of shady lending practices that have contributed to the housing crisis and propelled foreclosures to record highs.
Chairman Ben Bernanke and his central bank colleagues approved a plan Monday that would crack down on dubious lending practices that have hurt many of the riskiest “subprime” borrowers — people with tarnished credit histories or low incomes.
As I read through the article all I could do is think.. these rules aren’t stiff enough and the article concurs…
Consumer groups initially complained that the new rules are not strong enough. Lenders worry they are too tough, could limit mortgage options for people and make it harder for some to obtain financing.
What’s interesting is that article mentions that these rules won’t get tested for a while because of the current state of the market.. fewer buyers and fewer shady lenders who couldn’t hang on through this housing crisis. With that said, my question is why are they messing with these rules which will benefit the future of the real estate market?
The Federal Reserve needs to be working with Congress on fixing the current state of housing market crash by helping those who got preyed upon by these shady lenders and are now in or are facing Foreclosure. Before the July 4th summer break Congress had a Federal housing rescue bill moving through the Senate but hit a stalemate. Since then there has been more talk about this rescue bill.
What do you think.. are these new home buyer protection rules with the time.. do you think they’ll work?