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Fed To Shape Up Lending Industry & Practices

Posted on July 15th, 2008 4:42pm by Candy Evans
Filed under Real Estate, credit crunch, foreclosure, gossip

So the Federal Reserve has adopted a new plan that just may clean out the shady lending house… for starters, no more no-doc loans, require lenders to escrow tax/insurance on riskier borrowers (if any of “those folks” even get a loan, if any living folks ever get a loan), forbid brokers from coercing appraisers to inflate a property’s value (no, they didn’t do that!), and limit or ban pre-payment penalties. In other words, let’s go back to buying homes to live in and not bounce around like stocks. Or checks.

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One Comment to “Fed To Shape Up Lending Industry & Practices”

Baseball Mike @ July 16th, 2008 at 10:53 am

Look,

Rates happen to be going down right now. And if Fannie / Freddie did go out of business (which, won’t happen since the Feds have said they’re guaranteed) — rates would only go up 1% (which would still leave us well below historical averages).

It would probably be a good thing — there wouldn’t be rampant building of low quality projects like VR or sections of FM, etc. And what’s wrong with renting?