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The Fed's Plan
Highlights of the mortgage plan outlined by Federal Reserve Chairman Ben S. Bernanke: Bar lenders from making loans without proof of a borrower's income.
![Fed chief Ben S. Bernanke at a meeting yesterday in which the board voted unanimously for rules cracking down on unscrupulous mortgage-lending practices.](https://www.inquirer.com/resizer/SQ6Z5GTahy2bv8w2add-0NEGaTc=/760x507/smart/filters:format(webp)/arc-anglerfish-arc2-prod-pmn.s3.amazonaws.com/public/WPTIJJO5AFD45M3KFPHHUPN3HA.jpg)
Highlights of the mortgage plan outlined by Federal Reserve Chairman Ben S. Bernanke:
Bar lenders
from making loans without proof of a borrower's income.
Restrict lenders
from penalizing subprime borrowers who pay
off loans early.
Require lenders
to make sure subprime borrowers set aside money to pay for taxes and insurance.
Prohibit
certain types of misleading or deceptive advertising.
Require lenders
to provide financial disclosures so borrowers could use them while shopping for a mortgage.
For more details:
» READ MORE: www.federalreserve.gov
.
SOURCE: Associated Press