Fed Proposes Mortgage Protections
The Federal Reserve Board has voted for a proposal that would amend Truth in Lending regulations to protect consumers from unfair or deceptive home mortgage lending and advertising practices. The proposal was approved by a 5-0 vote and is intended for implementation under the Home Ownership and Equity Protection Act (HOEPA). Under the proposal, creditors would be prohibited from extending credit without considering the borrower’s ability to repay the loan, and would be required to verify borrowers’ income and assets before making the loan....