Federal Reserve issues mortgage practice rulesNews added by ProWEB Media on August 16, 2010
Gary Linnell

ProWEB Media

Joined: December 27, 2005

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.
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