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Thursday, Mar 28, 2024

Federal regulators prepare to tighten mortgage rules

With a foreclosure rescue bill facing an uncertain fate in Congress, federal regulators are putting the final touches on new rules designed to curb irresponsible mortgage lending and help some struggling homeowners refinance into more affordable loans. On Monday, the Federal Reserve is expected to require lenders to document borrowers’ incomes and verify that they can afford their mortgage payments — including the higher payments that come when adjustable-rate loans reset. “These new rules, which will apply to all lenders and not just banks, will address some of the problems that have surfaced in recent years in mortgage lending, especially high-cost mortgage lending,” Federal Reserve Chairman Ben S. Bernanke said at a conference Tuesday. For the full story visit http://www.latimes.com/business/la-fi-housing9-2008jul09,0,7563048.story

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