Busted: Bankers and The Global Economy

December 18, 2007

Fed Requests Action on Mortgage Policies

Filed under: banking, federal reserve, government, money, politics — Tags: , , , , , , — digitaleconomy @ 3:37 pm

Reaction of the Fed regarding predatory mortgage lending practices is very late. This press release does tend to validate the police role of the Fed and bring them above the fray. Meanwhile, the Bush Administration has been asleep at the wheel since the deregulation of the industry in the hope the industry would regulate itself. Now that is laissez-faire economics!

“The Federal Reserve Board on Tuesday proposed and asked for public comment on changes to Regulation Z (Truth in Lending) to protect consumers from unfair or deceptive home mortgage lending and advertising practices. The rule, which would be adopted under the Home Ownership and Equity Protection Act (HOEPA), would restrict certain practices and would also require certain mortgage disclosures to be provided earlier in the transaction.”

“Our goal is to promote responsible mortgage lending, for the benefit of individual consumers and the economy,” said Federal Reserve Chairman Ben S. Bernanke. “We want consumers to make decisions about home mortgage options confidently, with assurance that unscrupulous home mortgage practices will not be tolerated.”
~ FRB Press Release: December 18, 2007



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