Next week the Fed will set up new rules aimed at protecting homebuyers from the shady lending practices we have had in the past. This current mortgage meltdown was caused by lenders giving loans to people who weren't the best candidates for a loan. Negative amortization loans, no documentation loans, and loans given to people with poor credit are all things of the past. The rules include getting rid of the prepayment penalties for paying a loan off early, requiring borrows to set aside money for taxes and insurance, and having the lender see proof of income from all borrowers. This is a good move, and it should help homebuyers get themselves in a better situation when dealing with the financial obligations of owning a home. For more on this, Yahoo! News has an article.
Grant
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