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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.
Fed chief Ben S. Bernanke at a meeting yesterday in which the board voted unanimously for rules cracking down on unscrupulous mortgage-lending practices.Read moreCAROL T POWERS / Bloomberg News
    Inquirer
    Published 

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

    Inquirer