New Residential Mortgage Rules
The Fed (Ben Bernake) is issuing new rules for (high risk) residential mortgages next week. The highlights of the new rules are:
- Reduction or elimination pf pre-payment penalties on mortgages.
- A requirement that borrowers escrow monies for taxes and insurance.
- A requirement to consider the borrowers ability to repay the loan based on their income (not only the value of the collateral).
Comments