Fed mortgage rules to strengthen supervision of new.

Federal Reserve (Fed) 14 announced the final mortgage-related provisions to better protect consumers against deceptive mortgage lending practices harm. .<P> (Http://finance.) This requirement with the Council in December last year announced a similar proposal, but the increase in the protection of high-priced mortgage lenders terms. .</ P> <P> Fed will use the currently Freddie Mac (Freddie Mac) investigation report released by the preparation of a new index, the definition of high-priced loans than the index of interest rates by 1.5 percentage points higher priority lien mortgages. .Fed index higher than the 3.5 percent subordinated mortgage is attributed to high-priced loans. .High-priced subprime mortgage market, covering most of the loans, generally do not include the quality of the loan market. .</ P> <P> Fed on Monday to require the creditor verified by the borrower's income and assets, and the establishment of all the priority mortgage lien on discretionary account. .Lenders to assess the value of housing alone against the borrower's solvency. .Penalty for early repayment at the same time there are certain restrictions. .</ P> <P> regulations also require lenders advertise during this interest rate, monthly payments and other loans to elements of the scale of new information, against seven deceptive or misleading advertising practices, including interest rate .or have the case of variable amount of call is fixed. .</ P> <P> the provisions for mortgage loans will apply to all lending institutions, not just banks regulated by the Fed. .Most Fed proposed adjustment from the October 1, 2009 come into effect. .However, the discretionary account provisions in the April 1, 2010 will not take effect before. .</ P> <P> Fed Chairman Ben Bernanke said Monday's meeting, to change these provisions are very, very complex task. .Bernanke said the proposed final rule to protect consumers from mortgage market, unfair and fraudulent behavior problems, and will also ensure that qualified borrowers to obtain loans have repayment ability of buyers to provide .support; In addition to providing extensive protection for consumers outside the unified regulations for lending institutions to provide a fair competition environment, improve the competitiveness of the mortgage market, which ultimately will enable borrowers to benefit. .</ P>.