On Monday, the Federal Reserve approved plans to crack down on shady and illegal lending practices in the home mortgage industry.
South Florida alone shows nearly a 50% increase in foreclosures from last year. With statistics like this, finally the Federal Reserve is stepping in to try and regulate the industry.
The plan includes loan stipulations such as:
* Barring lenders for issueing loans without proof of income
* Requiring risky borrowers to set aside cash for taxes and fees
* Banning penatlies against risky borrowers who pay off their loans early
* and so on....
Consumer groups complain that the new rules are not strict enough, while lenders of course grumble that they are too strict.
The Fed's are trying to protect cosumers while not impeding the flow of credit.
