Federal Reserve issues mortgage practice rules
By Gary Linnell
ProWEB Wire (Industry News)
The Federal Reserve today published rules aimed at protecting consumers from abusive mortgage practices.
The new rules -- which require lenders to provide consumers with clearer disclosures about their loan costs -- also implement a ban on payments to mortgage brokers for steering borrowers into loans with higher interest rates.
Under the terms of these rules, lenders must also provide a table that states the maximum interest rate and payment that can occur during the first five years of an adjustable-rate mortgage.